UCC Article 9 and Security Agreements Quiz

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Which statement accurately reflects the requirements for a security agreement?

The composite document test is a means of piecing together an enforceable financing statement from multiple documents.

The standard form financing statement found in UCC §9-521 will not ordinarily qualify as a security agreement. (correct)

A court will presume that a debtor intended to create a security interest, even where no “granting language” was used.

A debtor is required to sign a security agreement, and electronic security agreements are not permitted.

Why is a cashier’s check considered more secure than a personal check from the payee’s point of view?

The drawee is already obligated to make final payment on a cashier’s check, while the drawee of a personal check may not be obligated.

In a cashier’s check, the remitter’s obligation to pay is merged into the negotiable instrument. In a personal check, the drawer’s obligation to pay is not merged into the negotiable instrument. (correct)

A cashier’s check is always backed by a financial institution, while a personal check may not be backed by sufficient funds.

A cashier’s check is considered unconditional payment, while a personal check is conditional payment.

Under the UCC, which statement about the secured party's right to retain collateral is least accurate?

The UCC permits courts to apply the “rebuttable presumption” test to determine whether a secured party who has failed to provide sufficient notice prior to disposition of consumer goods may nevertheless recover a deficiency from the debtor following a commercially reasonable sale.

The secured party has no right to retain the collateral, even in total satisfaction of the secured debt, if the debtor is not willing to give its consent to this disposition of the collateral. (correct)

A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties.

Commercial reasonableness is among the rights that Article 9 does not allow a debtor to waive, even after an event of default.

Which statement about the secured party's rights under the UCC is least accurate?

A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties. (A) Signup and view all the answers

According to the UCC, which statement about the secured party's rights is least accurate?

A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties. (A) Signup and view all the answers

Which statement about the secured party's rights to waive under Article 9 of the UCC is least accurate?

A secured party who wishes to sell the collateral it has repossessed must obtain permission from the debtor, as well as any junior secured parties. (A) Signup and view all the answers

Which statement about the UCC's treatment of secured party's rights is least accurate?

The secured party has no right to retain the collateral, even in total satisfaction of the secured debt, if the debtor is not willing to give its consent to this disposition of the collateral. (A) Signup and view all the answers

Security Agreement Requirement

A standard form financing statement (UCC §9-521) typically does not qualify as a security agreement.

Cashier's Check vs. Personal Check

A cashier's check merges the remitter's obligation to pay into the instrument. In a personal check, the drawer's obligation is separate.

Secured Party's Right to Retain Collateral

Even in total satisfaction of the debt, a secured party cannot retain collateral without the debtor's consent.

Secured Party's Rights Under UCC

Selling repossessed collateral does not require permission from the debtor or junior secured parties.

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Secured Party's Rights Under UCC (2)

A secured party does not need permission from the debtor or junior secured parties to sell repossessed collateral.

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Secured Party's Right to Waive under UCC

The secured party is not required to obtain consent from the debtor or junior secured parties to sell repossessed collateral.

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Secured Party's Rights under UCC (3)

The secured party has the right to retain collateral, even in total satisfaction of the debt, without the debtor's consent.

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UCC Article 9 and Security Agreements Quiz

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Questions and Answers

Which statement accurately reflects the requirements for a security agreement?

Why is a cashier’s check considered more secure than a personal check from the payee’s point of view?

Under the UCC, which statement about the secured party's right to retain collateral is least accurate?

Which statement about the secured party's rights under the UCC is least accurate?

According to the UCC, which statement about the secured party's rights is least accurate?

Which statement about the secured party's rights to waive under Article 9 of the UCC is least accurate?

Which statement about the UCC's treatment of secured party's rights is least accurate?

Flashcards

Security Agreement Requirement

Cashier's Check vs. Personal Check

Secured Party's Right to Retain Collateral

Secured Party's Rights Under UCC

Secured Party's Rights Under UCC (2)

Secured Party's Right to Waive under UCC

Secured Party's Rights under UCC (3)

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