expert solutions 497091

1. A financing statement

Must be filed on the same date of the attachment of the security interest

Must contain the names of the debtor and secured party, an indication of the collateral, and the signatures of the debtor and the secured party

Is usually effective for 5 years.

Must be filed on consumer goods in order to be perfected

2. On February 1, Debtor Co. borrowed $100,000 from Secured Bank to finance Debtor s current and future inventory. On that same date, the money was transferred into Debtor s account. On February 2, the debtor signed the loan documents. On February 21, Debtor authenticated a security agreement giving Bank a security interest in the inventory. On February 23, Debtor authenticated a financing statement and signed the document in favor of Bank. Thereafter, Bank filed the financing statement on February 25. Notice to the other creditors was received by the other creditors on February 27. Bank s security interest was perfected on

February 2

February 21

February 23

February 25

February 27

3. The Secured Transactions Article of the UCC recognizes various methods of perfecting a security interest in collateral. Which of the following methods is not recognized by the UCC?

Filing a financing statement

Creditor possession without filing financing statement

A pawned asset without filing a financing statement

A retailer obtains a security interest in consumer goods without filing

The parties clearly state in the security agreement that the transaction is perfected.

4. Which of the following is a true statement about bankruptcy law

Tort claims for negligence cannot be discharged in bankruptcy.

Federal exemptions set limits on health aids.

Retirement funds are normally not exempt assets and that the trustee may seize.

It takes a minimum of 5 creditors to force an involuntary bankruptcy

There are exemption limits for tools of the trade.