All Related Questions of Security Interest

Q: A statement of financial affairs created for an insolvent corporation that is

A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values): Assets pled...

Q: The Copper King Inn, Inc. had money problems. It

The Copper King Inn, Inc. had money problems. It borrowed $62,500 from two of its officers, Noonan and Patterson, but that did not suffice to keep the inn going. So Noonan, on behalf of Copper King, a...

Q: Sears sold a lawn tractor to Cosmo Fiscante for $1,

Sears sold a lawn tractor to Cosmo Fiscante for $1,481. Fiscante paid with his personal credit card. Sears kept a valid security interest in the lawnmower but did not perfect. Fiscante had the machine...

Q: Dupont Feed bought and sold agricultural products. Dupont borrowed $300

Dupont Feed bought and sold agricultural products. Dupont borrowed $300,000 from Wells Fargo Bank and gave Wells Fargo a security interest in all inventory, including after-acquired inventory. Wells F...

Q: Eugene Ables ran an excavation company. He borrowed $500,

Eugene Ables ran an excavation company. He borrowed $500,000 from the Highland Park State Bank. Ables signed a note promising to repay the money and an agreement giving Highland a security interest in...

Q: First Union Bank of Florida loaned money to Dale and Lynn Rix

First Union Bank of Florida loaned money to Dale and Lynn Rix for their purchase of Ann ’ s Hallmark, a Florida corporation. First Union took a security interest in the store ’ s equipment, fixtures,...

Q: Benson purchased a new Ford Thunderbird auto- mobile. She traded

Benson purchased a new Ford Thunderbird auto- mobile. She traded in her old car and used the Magnavox Employees Credit Union to finance the balance. The credit union took a security interest in the Fo...

Q: Lockovich borrowed money from a bank to purchase a motorboat. The

Lockovich borrowed money from a bank to purchase a motorboat. The bank took a security interest in it but never filed a financing statement. A subsequent default on the loan occurred, and the debtor w...

Q: In 1987, the Muirs bought a motor home. In 1988

In 1987, the Muirs bought a motor home. In 1988, the Muirs created and Bank of the West acquired and perfected a security interest in the motor home. In 1992, the Muirs entered into an agreement with...

Q: A borrowed money from B and orally agreed that B had a

A borrowed money from B and orally agreed that B had a security interest in equipment that was standing in A ’ s yard. Nothing was in writing, and no filing of any kind was made. Nine days later, B to...

Q: Harold McClellan sold ice-making machinery to Bobbie Cantrell ’ s

Harold McClellan sold ice-making machinery to Bobbie Cantrell ’ s brother for $200,000 to be paid in installment payments. McClellan took a security interest in the ice machine but did not perfect it...

Q: When Johnson Hardware Shop borrowed $20,000 from First Bank

When Johnson Hardware Shop borrowed $20,000 from First Bank, it used its inventory as collateral for the loan. First Bank perfected its security interest by filing a financing statement. The inventory...

Q: Kimbrell ’ s Furniture Co. sold a new television set and

Kimbrell ’ s Furniture Co. sold a new television set and tape player to Charlie O ’ Neil and his wife. Each purchase was on credit, and in each instance, a security agreement was executed. Later on th...

Q: Marsh has a prize horse named Arabian Knight. In need of

Marsh has a prize horse named Arabian Knight. In need of working capital, Marsh borrows $5,000 from Mendez, who takes possession of Arabian Knight as security for the loan. No written agreement is sig...

Q: PRA Aviation, LLC, borrowed $3 million from Center Capital

PRA Aviation, LLC, borrowed $3 million from Center Capital Corp. to buy a Gates Learjet 55B. Center perfected a security interest in the plane. Later, PRA defaulted on the loan, and Center obtained po...

Q: Steven Light bought a $55,050 wedding ring for his

Steven Light bought a $55,050 wedding ring for his wife, Sherri Light, on credit from Royal Jewelers, Inc., a store in Fargo, North Dakota. The receipt granted Royal a security interest in the ring. L...

Q: How is a purchase-money security interest in consumer goods created

How is a purchase-money security interest in consumer goods created and perfected?

Q: Redford is a seller of electric generators. He purchases a large

Redford is a seller of electric generators. He purchases a large quantity of generators from a manufacturer, Mallon Corp., by making a down payment and signing an agreement to pay the balance over a p...

Q: Nick Sabol, doing business in the recording industry as Sound Farm

Nick Sabol, doing business in the recording industry as Sound Farm Productions, applied to Morton Community Bank for a $58,000 loan to expand his business. Besides the loan application, Sabol signed a...

Q: In May 1990, Gerald Gaucher entered into a Retail Installment Contract

In May 1990, Gerald Gaucher entered into a Retail Installment Contract and Security Agreement with Cold Springs RV Corp. This agreement provided for the purchase of a travel trailer. In the agreement,...

Q: Mary Smith bought a car from Doug Chapman under an installment sales

Mary Smith bought a car from Doug Chapman under an installment sales contract. Smith carried the insurance on the car, as required by the contract. Shortly after Smith purchased the car, it was wrecke...

Q: McCoy, an Oklahoma cattle dealer, orally agreed with Chandler,

McCoy, an Oklahoma cattle dealer, orally agreed with Chandler, a Texas cattle broker, to ship cattle to a New Mexico feedlot for delivery to Chandler. The agreement was for six lots of cattle valued a...

Q: (a) Describe the requirements for attachment of a security interest

(a) Describe the requirements for attachment of a security interest under UCC, Article 9. (b) Describe four different instances that demonstrate perfection of a security interest.

Q: Roger sells his expensive mowing tractor to his neighbor Zan. Shortly

Roger sells his expensive mowing tractor to his neighbor Zan. Shortly after Zan takes possession, someone representing the lawn equipment company tells Zan that the store holds a purchase money securi...

Q: 1. Eugene Ables ran an excavation company. He borrowed $

1. Eugene Ables ran an excavation company. He borrowed $500,000 from the Highland Park State Bank. Ables signed a note promising to repay the money and an agreement giving Highland a security interest...

Q: 1. Under the UCC Article 9, which of the following

1. Under the UCC Article 9, which of the following actions will best perfect a security interest in a negotiable instrument against any other party? A. Filing a security agreement B. Taking possession...

Q: Fuqua Homes, Inc. (Fuqua), is a manufacturer of

Fuqua Homes, Inc. (Fuqua), is a manufacturer of prefabricated houses. MMM, a dealer of prefabricated homes, was a partnership created by two men named Kirk and Underhill. On seven occasions before the...

Q: Elizabeth Valentine purchased a home in Philadelphia, Pennsylvania. She applied

Elizabeth Valentine purchased a home in Philadelphia, Pennsylvania. She applied for and received a home loan from Salmon Building and Loan Association (Salmon) for the purpose of paneling the cellar w...

Q: PSC Metals, Inc. (PSC), entered into an agreement

PSC Metals, Inc. (PSC), entered into an agreement whereby it extended credit to Keystone Consolidated Industries, Inc., and took back a security interest in personal property owned by Keystone. PSC fi...

Q: C&H Trucking, Inc. (C&H),

C&H Trucking, Inc. (C&H), borrowed $19,747.56 from S&D Petroleum Company, Inc. (S&D). S&D hired Clifton M. Tamsett to prepare a security agreement naming C&H as the debtor and giving S&D a security in...

Q: Joseph H. Jones and others (debtors) borrowed money from

Joseph H. Jones and others (debtors) borrowed money from Columbus Junction State Bank (Bank) and executed a security agreement in favor of Bank. Bank perfected its security interest by filing financin...

Q: Prior Brothers, Inc. (PBI), began financing its farming

Prior Brothers, Inc. (PBI), began financing its farming operations through Bank of California, N.A. (Bank). Bank’s loans were secured by PBI’s equipment and after-acquired property. Bank immediately f...

Q: Heritage Ford Lincoln Mercury, Inc. (Heritage) was in

Heritage Ford Lincoln Mercury, Inc. (Heritage) was in the business of selling new cars. Heritage entered into an agreement with Ford Motor Credit Company (Ford) whereby Ford extended a continuing line...

Q: Mike Thurmond operated Top Quality Auto Sales, a used car dealership

Mike Thurmond operated Top Quality Auto Sales, a used car dealership. Top Quality financed its inventory of vehicles by obtaining credit under a financing arrangement with Indianapolis Car Exchange (I...

Q: Yvonne Sanchez borrowed money from MBank to purchase an automobile. She

Yvonne Sanchez borrowed money from MBank to purchase an automobile. She gave MBank a security interest in the vehicle as collateral to secure the loan. When Sanchez defaulted on the loan, MBank hired...

Q: At age 19, Zoe Trainor is in the middle of her

At age 19, Zoe Trainor is in the middle of her second year of studies at a community college in Charlotte. She has done well in her course work; majoring in pre-business studies, she currently has a 3...

Q: 1. You are the chief executive officer of Money Games Inc

1. You are the chief executive officer of Money Games Inc. (MGI), which has begun to market Borrow & Spend, a video game set in the world of finance. To buy ads, MGI borrows $50,000 from First Savings...

Q: What happens when a secured party claims a security interest in collateral

What happens when a secured party claims a security interest in collateral that has been sold by the debtor?

Q: Corona Fruits & Veggies (Corona) leased farmland to a strawberry

Corona Fruits & Veggies (Corona) leased farmland to a strawberry farmer named Armando Munoz Juarez. He signed the lease “Armando Munoz.” Corona advanced him money for payroll and farm production expen...

Q: Oak Hill Bank loaned Roger and Bonnie Johnson money to buy a

Oak Hill Bank loaned Roger and Bonnie Johnson money to buy a mobile home, which they used for family purposes. The bank took a security interest in the vehicle. The Johnsons went bankrupt. Oak Hill ha...

Q: Lila Williams purchased a new Roadtrek 200 motor home from New World

Lila Williams purchased a new Roadtrek 200 motor home from New World R.V. Inc. She paid about $14,000 down and financed $63,000, giving a security interest to New World. The RV company assigned its se...

Q: The text offers a hypothetical case concerning Tele Maker, which sells

The text offers a hypothetical case concerning Tele Maker, which sells 500 televisions to Retailer, keeping a security interest in the sets and proceeds. Customers sign chattel paper when they purchas...

Q: Robert Roser obtained a loan from Sovereign Bank which he promptly used

Robert Roser obtained a loan from Sovereign Bank which he promptly used to buy a car. Nineteen days later, Sovereign filed a lien with the state of Colorado. The bank expected that, with a perfected i...

Q: Following are currency exchange “cross rates” between pairs of major

Following are currency exchange “cross rates” between pairs of major currencies. Currency cross rates include both direct and indirect methods for expressing relati...

Q: In June 1995, Michael and Debra Boudreaux, doing business as

In June 1995, Michael and Debra Boudreaux, doing business as D&J Enterprises, Inc., bought a retail electronics store operated under a franchise from Radio Shack. They borrowed from Cabool State Bank...

Q: G&K Farms, a North Dakota partnership, operated a

G&K Farms, a North Dakota partnership, operated a farm in Texas. G&K was insured under the Supplemental Revenue Assistance Payments Program (SURE), through which the federal government provides financ...

Q: In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols

In 1997, Leon Greenblatt, Andrew Jahelka, and Richard Nichols incorporated Loop Corp. with only $1,000 of capital. Three years later, Banco Panamericano, Inc., which was run entirely by Greenblatt and...

Q: Tammy Herring and Stacy Bowman signed an agreement titled “Bill of

Tammy Herring and Stacy Bowman signed an agreement titled “Bill of Sale—Purchase Agreement” involving a horse named Toby. The agreement defined Herring as the “buyer” and Stacy and Gregory Bowman, who...

Q: Tusa Office Solutions, Inc., a subsidiary of Tusa–Expo

Tusa Office Solutions, Inc., a subsidiary of Tusa–Expo Holdings, Inc., was the largest retail dealer in new furniture made by Knoll, Inc. A customer ordered Knoll furniture from Tusa Office, which order...

Q: Edward owned a retail sporting goods shop. A new ski resort

Edward owned a retail sporting goods shop. A new ski resort was being constructed in his area, and to take advantage of the potential business, Edward decided to expand his operations. He borrowed a l...

Q: Shalene Kolchek bought a Great Lakes spa from Val Porter, a

Shalene Kolchek bought a Great Lakes spa from Val Porter, a dealer who was selling spas at the state fair. Porter told Kolchek that Great Lakes spas were “top of the line” and “the Cadillac of spas.”...

Q: Roger Rand loaned funds to Frank Welte to buy farm equipment.

Roger Rand loaned funds to Frank Welte to buy farm equipment. Security agreements were executed for the loans, and under these agreements, Welte could not transfer the equipment without Rand’s consent...

Q: National Cash Register Company (NCR), a manufacturer of cash registers

National Cash Register Company (NCR), a manufacturer of cash registers, entered into a sales contract for a cash register with Edmund Carroll. On November 18, Firestone and Company made a loan to Carr...

Q: National Acceptance Company loaned Ultra Precision Industries $692,000 and

National Acceptance Company loaned Ultra Precision Industries $692,000 and to secure repayment of the loan Ultra executed a chattel mortgage security agreement on National’s behalf on March 7, 2015. N...

Q: New West Fruit Corporation (New West) and Coastal Berry Corporation

New West Fruit Corporation (New West) and Coastal Berry Corporation are both brokers of fresh strawberries. In the second half of 2019, New West’s predecessor, Monc’s Consolidated Produce, Inc., loane...

Q: In July 2020, Edward Slater purchased a new Galaxy boat primarily

In July 2020, Edward Slater purchased a new Galaxy boat primarily for personal purposes. To finance the purchase, Slater obtained a loan from Howell State Bank, agreeing to repay the loan in ninety-si...

Q: Victor sells to Bonnie a refrigerator for $600 payable in monthly

Victor sells to Bonnie a refrigerator for $600 payable in monthly installments of $30 for twenty months. Bonnie signs a security agreement granting Victor a security interest in the refrigerator. The...

Q: Campbell loaned Perry Dixon $7,000, which was secured

Campbell loaned Perry Dixon $7,000, which was secured by a possessory security interest in stock owned by Perry. The stock had a market value of $4,000. In addition, Campbell insisted that Perry obtai...

Q: Joanna takes a security interest in the equipment in Jason Store and

Joanna takes a security interest in the equipment in Jason Store and files a financing statement claiming “equipment and all after acquired equipment.” Berkeley later sells Jason Store a cash register...

Q: Finley Motor Company sells an automobile to Sara and retains a security

Finley Motor Company sells an automobile to Sara and retains a security interest in it. The automobile is insured, and Finley is named beneficiary. Three days after the automobile is totally destroyed...

Q: On September 5, Wanda, a widow who occasionally teaches piano

On September 5, Wanda, a widow who occasionally teaches piano and organ in her home, purchased an electric organ from Murphy’s music store for $4,800, trading in her old organ for $1,200 and promising...

Q: On May 1, Lincoln lends Donaldson $200,000 and

On May 1, Lincoln lends Donaldson $200,000 and receives from Donaldson his agreement to pay this amount in two years and takes a security interest in the machinery and equipment in Donaldson’s factory...

Q: Jones bought a used car from the A-Herts Car Rental

Jones bought a used car from the A-Herts Car Rental Sys- tem, which regularly sold its used equipment at the end of its fiscal year. First National Bank of Roxboro had previ- ously obtained a perfecte...

Q: Jessica sold goods to Stacy for $2,500 and retained

Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later, Stacy filed a voluntary petition in bankruptcy under Chapter 7. At this time, Stacy still owed Jessic...

Q: Karen has filed a voluntary petition for a Chapter 7 proceeding.

Karen has filed a voluntary petition for a Chapter 7 proceeding. The total value of her estate is $35,000. Ben, who is owed $18,000, has a security interest in property valued at $12,000. Lauren has a...