Rights & Buyer Protection

Question 1

Interest Continuance

Answer 1

Generally, a security interest will continue despite any sale, lease, or disposition of collateral.

Question 2

Identifiable Proceeds

Answer 2

A perfected security interest will attach to any identifiable proceeds from disposition of collateral.

Question 3

After-Acquired Property

Answer 3

A security agreement that includes an after-acquired property clause attaches when the debtor obtains an interest in the property.

Question 4

Buyers in the Ordinary Course of Busiiness

Answer 4

Buyers in the ordinary course of business take free of a security interest created by the seller.

BOCB is person:
1) buys goods in good faith
2) without knowledge sale violates rights of another
3) in the ordinary course from a merchant

Question 5

Consumer-to-Consumer

Answer 5

Buyers of consumer goods take free of a security interest if bought:
1) without knowledge of security interest
2) for value
3) from a consumer who purchased goods for personal use, and
4) before filing of financing statement covering goods