1. The person who owes the payment of a secured obligation is the secured party.
A) True
B) False
2. A security interest is enforceable only if the collateral is in the possession of the secured party.
A) True
B) False
3. The document that is signed by the debtor to create a security interest is known as a security agreement.
A) True
B) False
4. A security interest cannot be perfected without filing a financing statement.
A) True
B) False
5. To be valid, a security agreement must contain a description of the collateral.
A) True
B) False
6. A financing statement may be filed electronically.
A) True
B) False
7. A security interest may attach to intangible personal property.
A) True
B) False
8. A perfected security interest can be created by transferring possession to the secured party.
A) True
B) False
9. A financing statement is valid for no more than three years after filing.
A) True
B) False
10. A purchase money security interest(PMSI)is created in most instances where the seller arranges for or provides financing for purchase of the item.
A) True
B) False
11. A purchase money security interest(PMSI) requires the filing of a financing statement to be valid.
A) True
B) False
12. An improper filing can render a secured party unperfected.
A) True
B) False
13. Proceeds consist of whatever is received or is to be received if collateral is sold.
A) True
B) False
14. A security interest that provides for a security interest in proceeds is a floating lien.
A) True
B) False
15. A security agreement needs to be in writing signed by both parties to be enforceable.
A) True
B) False
16. The financing statement filed with the Department of State must be signed by the debtor to be valid.
A) True
B) False
17. The UCC allows the creditor to describe the collateral in broad general terms.
A) True
B) False
18. When there are two conflicting secured parties the one who has the first signed security agreement prevails over the one who first filed their financing statement.
A) True
B) False
19. When two conflicting security interests are unperfected the one first created has priority.
A) True
B) False
20. A buyer in the ordinary course of business generally has priority over a secured creditor.
A) True
B) False
21. Under most circumstances a purchase money security interest(PMSI) will take priority over a previous creditor's secured interest in after acquired property.
A) True
B) False
22. When a secured debt is paid, the secured party must file a termination statement no later than 30 days.
A) True
B) False
23. On a default, unless the security agreement provides otherwise, the secured party has the right to repossess the collateral.
A) True
B) False
24. The price that a secured party obtains on a sale of the collateral is all that the creditor can recover on the debt.
A) True
B) False
25. The creditor upon repossession of the collateral must always sell the collateral.
A) True
B) False