Security interest

Question 1

after acquired property

Answer 1

without explicit after acquired property clause in the security agreement, only reaches collateral named in the security agreement.

Question 2

exceptions to after acquired property rule

Answer 2

Even without an after-acquired property clause, a security interest will attach automatically to collateral of a type that’s rapidly depleted and replenished, such as accounts and inventory

Question 3

exceptions to after acquired property rule

Answer 3

a security interest will attach automatically to collateral of a type that’s rapidly depleted and replenished, such as accounts and inventory, and automatically attaches to identifiable proceeds of collateral.

Question 4

after acquired clause- consumer goods

Answer 4

do not apply to consumer goods unless the debtor acquires rights in the goods within 10 days after the creditor gives value.

Question 5

proceeds

Answer 5

security interest in collateral automatically attaches to identifiable proceeds of the collateral.

Question 6

Identifiable

Answer 6

means that the proceeds can be traced back to the original collateral.

Question 7

lowest intermediate balance rule

Answer 7

look at the bank account starting at the time the proceeds are deposited and ending at the time you are applying the rule. The lowest balance during
that time period is the secured party’s identifiable proceeds

Question 8

lowest intermediate balance rule

Answer 8

look at the bank account starting at the time the proceeds are deposited and ending at the time you are applying the rule. The lowest balance during
that time period is the secured party’s identifiable proceeds.