Revised Uniform Commercial Code Article 9

Question 1

T or F
“Strict Foreclosure” is a procedure that allows a secured party to acquire the debtor’s interest in collateral through litigation.

Answer 1

False. Strict Foreclosure is a procedure that allows a secured party to acquire the debtor’s interest in collateral without the need for a sale or other disposition.

Question 2

Financing statements for most types of collateral expire after five years. What can a credit union do to keep their security interest in effect until the loan is paid in full?

Answer 2

The credit union can continue to file continuation statements within six months of the expiration dates until the loan is paid in full.

Question 3

In general, which lender has priority rights to collateral used to secure a loan?

Answer 3

The first secured lender to file a financing statement

Question 4

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?

Answer 4

The credit union must file a termination statement within one month after the loan is paid in full or within 20 days of receiving a request from the borrower if that request is received within that one-month time period.

Question 5

Notice of Sale definition

Answer 5

Provides the member with detailed information on
the upcoming sale of the loan collateral from being
disposed of.

Question 6

Calculation of Deficiency definition

Answer 6

Informs the member of the balance of the loan after the proceeds from a sale or other disposition have been applied to that loan.

Question 7

Notice of Accounting definition

Answer 7

A notice listing the amount of the unpaid loan balance and the identity of the collateral securing the loan.