Post Perfection Events

Question 1

Post-Perfection Events

Answer 1

Later events will not affect perfection.

Question 2

When does financing statement lapse?

Answer 2

5 years unless continuation statement is filed within 6 months before lapse.

Question 3

Lease Is A Security Interest If:

Answer 3

Lease Is A Security Interest If:

not terminable by lessee AND EITHER lasts for entire economic life of leased goods OR debtor may purchase goods for nominal sun at end of lease.

Question 4

True Lease

Answer 4

If a true lease and lessee defaults, the lessor can repossess the leased good and does not risk losing its interest in the leased goods to the lessee’s other creditors.

Question 5

Not True Lease But Really Security Interest

Answer 5

Lessor’s claim to leased goods is limited to its rights as a secured party.