Secured Transactions

Question 1

Subject: Secured Transactions

When can attachment be oral?

Answer 1

Subject: Secured Transactions

Attachment may be oral if the secured party has possession or control of the collateral

Question 2

Subject: Secured Transactions

What are the elements that are required to be present in order for attachment to occur?

Answer 2

Subject: Secured Transactions
Elements that are required to be present in order for attachment to occur.
1. Secured party gives value
2. Debtor has rights in the collateral
3. ONE of the following is true
a. Secured party must possess collateral if agreed by debtor
b. Secured party must have control of certain types of collateral
c. Secured party has signed security agreement.

Question 3

Subject: Secured Transactions

What are the requirements in order to be a Holder in Due Course (HDC)?

Answer 3

Subject:  Secured Transactions
HDC requirements
1.  Holder of a negotiable instrument
2.  Gave Value
3.  Took in good faith
4.  Took without notice of certain problems

Question 4

Subject: Secured Transactions

In default, when is a debtor entitled to a compulsory disposition of collateral?

Answer 4

Subject: Secured Transactions
Compulsory disposition of collateral
1. Colleteral is in consumer goods AND
2. Debtor has paid 60% or more of the obligation.

Question 5

Subject: Secured Transactions

True or False- Filing for perfection is not required for a PMSI in consumer goods

Answer 5

Subject: Secured Transactions

True - Filing for perfection is not required for a PMSI in consumer goods

Question 6

Subject: Secured Transactions

True or False- Filing for perfection is not required for inventory.

Answer 6

Subject: Secured Transactions
This statement is False
Filing for perfection IS REQUIRED for inventory.