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| 1 | |
In order to ensure that an individual pays on an obligation, a creditor may obtain a security interest in the individual's personal property. |
| | A) | True |
| | B) | False |
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| 2 | |
A creditor who seeks to obtain a security interest in an automobile must have that interest stated on the title or "pink slip" to the car. |
| | A) | True |
| | B) | False |
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| 3 | |
As a general rule, if more than one creditor has perfected a security interest in the same collateral, the creditors share the proceeds of that property on a pro rata basis, regardless of when each attached or perfected his interest. |
| | A) | True |
| | B) | False |
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| 4 | |
A bona fide purchaser is a customer who buys a secured item of personal property for personal use for value and without any knowledge of the security. |
| | A) | True |
| | B) | False |
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| 5 | |
A security agreement must properly describe the property that it seeks to attach. |
| | A) | True |
| | B) | False |
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| 6 | |
Patents, copyrights, and other forms of intellectual property may be used as security for a debt. |
| | A) | True |
| | B) | False |
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| 7 | |
Which of the following statements about "attachment" of a security interest to property is true? |
| | A) | Attachment must take place in a physical as well as legal sense. |
| | B) | A debtor-creditor relationship need not exist in order for a security interest to exist. |
| | C) | The debtor must have rights in the collateral (particular property at issue). |
| | D) | All of the above |
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| 8 | |
Which one of the following methods may be used to "perfect" a security interest? |
| | A) | Filing a public notice of the security interest. |
| | B) | The creditor actually possessing the property. |
| | C) | Placing an advertisement in the local newspaper. |
| | D) | A and B |
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| 9 | |
ABC Bank loans Lisa's Hallmark Store $20,000 so that the store may buy inventory of Halloween merchandise. ABC perfects an interest in that inventory. Jack, a customer of ABC, purchases approximately $500 of Halloween merchandise from Lisa's Hallmark Store. However, when he purchased the merchandise, the Store had defaulted on its obligation to ABC. Under these facts: |
| | A) | ABC may repossess the merchandise from Jack. |
| | B) | ABC may recover $500 from Jack. |
| | C) | ABC may not recover anything from Jack provided that he purchased the merchandise in the ordinary course of business. |
| | D) | Both A and B |
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| 10 | |
Which of the following is considered personal property under UCC Article 9? |
| | A) | automobiles |
| | B) | bonds |
| | C) | conditional sales contracts |
| | D) | All of the above |
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