Revised UCC Code Article 9 Flashcards
Strict foreclosure is a procedure that allows a secured party to acquire the debtors interest in collateral through litigation true or false?
False it is a procedure that allows a secured party to acquire the debtor’s interest in collateral without the need for resale or other disposition
Financing statements for most types Id collateral expire after 5 years. What can a credit Union do to keep their security interest in effect until the loan is paid in full?
The credit Union can continue to file continuation statements within 6 months of the expiration dates until the loan is paid in full
In general which lender has priority rights to collateral used to secure a loan?
The first secured lender to file a financing statement
When a loan secured by consumer goods such as furniture is paid in full what is the credit Union required to file and when must it be filed?
A termination statement and it must be filed within 1 month if of the loan being paid off or 20 days after a request from a borrower if they request it within that month
UCC 9 requires credit unions to provide 3 notices to borrowers what are those 3 notices?
Notice of sale
Calculation of deficiency
Notice of accounting
Match the notice to the definition: informs a member of balance of the loan after the proceeds from sale or other disposition have been applied to that loan
Notice of sale
Calculation of deficiency
Notice of accounting
Calculation of deficiency
Match the notice to the definition
A notice listing the amount of the unpaid loan balance and the identity of the collateral securing the loan
Notice of sale
Calculation of deficiency
Notice of accounting
Notice of accounting
Provides a member with detailed information on the upcoming sale of the loan collateral being disposed of
Notice of sale
Calculation of deficiency
Notice of accounting
Notice of sale
