MC Questions Flashcards
Jill Green, an IA resident, owns a small closely-held corporation. The articles of incorporation are filed w/ the MN secretary of state and list the corp’s name as Lavender Blue, Inc. The corporation’s main asset is a resort hotel know as the Blue Bayou Inn and that name is used on all signs, letterhead and advertising for the business. The hotel is located in Omaha, NE. You represent Orange City Bank, chartered and located in IA, which plans to loan the corporation $2,000,000 and take a security interest in all of the hotel’s furniture. None of the furniture would be fixtures. Orange City Bank will perfect by filing, but it needs your advice as to what name to use for the debtor on the financing statement, and where to file that financing statement.
The debtor’s name should be Lavender Blue, Inc., and the financing statement should be filed w/ the Secretary of State’s office in MN.
which name should a registered organization use on a finanancing statement?
the name on the public organic record most recently filed w/ the registered organization’s jurisdiction of organization
when the debtor is a corporation, where should the financing statement be filed?
in the state of incorporation
T/F: article 9 security interests automatically attach to identifiable process of the sale or other disposition of collateral under 9-203 and 9-315
true
T/F: the term “money” in Article 9 refers to money in bank accounts?
False, money refers to coins and paper money
T/F: proceeds that are deposited into a general bank account and commingled w/ non-proceeds funds, are per se not “identifiable” as proceeds
False.
T/F: If a security agreement does not mention proceeds, then the security interest does not follow such proceeds.
False. A security interest automatically attaches to any identifiable proceeds of collateral, even if the security agreement does not mention proceeds.
