Secured Party A attached a security interest in equipment on January 1 but never perfected. Secured Party B attached and perfected a security interest in the same equipment on February 1. Who generally has priority? The...
Citations: UCC 9-322
In an Article 9 secured transaction, which statement best describes how default is determined? The question tests the source of default rules. UCC 9-601, UCC 1-304
Citations: UCC 9-601, UCC 1-304
A secured party has a perfected security interest in inventory. The debtor sells inventory and receives identifiable accounts and cash proceeds. What is the best general statement about priority in the proceeds? The ques...
Citations: UCC 9-315, UCC 9-322
A secured party has a perfected security interest in inventory. The debtor sells inventory and receives identifiable proceeds. Which statement best describes perfection in the proceeds? The question tests temporary and c...
Citations: UCC 9-315
A secured party perfected by filing a financing statement covering equipment. What is the ordinary rule for how long the filed financing statement remains effective? The question tests duration and continuation of filed...
Citations: UCC 9-515
A secured party sells collateral after default and receives sale proceeds exceeding reasonable sale expenses and the secured debt. A subordinate secured party made an authenticated demand before distribution. How should...
Citations: UCC 9-615
A supplier sells inventory to a retailer on secured credit. A bank already has a perfected blanket security interest in the retailer's inventory. What must the supplier generally do to obtain PMSI priority in the invento...
Citations: UCC 9-324
...eement covering "all consumer goods now owned or later acquired." The secured party gives value on the signing date. The debtor buys a new household piano 45 days later. What is the best Article 9 answer about attachment...
Citations: UCC 9-204
...y interest in a negotiable promissory note payable to the debtor. The secured party takes possession of the note after attachment. Which statement is most accurate? The question tests possession as a method of perfection...
Citations: UCC 9-313
A debtor has two secured loans with the same lender. Loan 2 says default occurs if the debtor defaults on any other obligation owed to the lender. The debtor defaults on Loan 1 but remains current on Loan 2's scheduled p...
Citations: UCC 9-601, UCC 1-304
...agrees to pledge a negotiable promissory note as collateral, and the secured party takes possession of the note. The secured party gave value and the debtor owns the note. What is the effect of possession on Article 9 a...
Citations: UCC 9-203
A debtor signs a secured demand note. The lender makes a proper written demand for payment by Friday at 5 p.m., and the debtor does not pay by that deadline. What is the most accurate default analysis? The question tests...
Citations: UCC 9-601, UCC 1-304
A debtor was in default, but the secured party breached the peace during repossession and later sold collateral without required notice. Which statement best describes the debtor's possible Article 9 remedies? The questi...
Citations: UCC 9-625, UCC 9-626
A secured equipment loan requires the debtor to keep the equipment insured and states that failure to do so is an event of default. The debtor is current on payments but lets insurance lapse for two weeks. Which statemen...
Citations: UCC 9-601
A secured lender accepted six consecutive monthly payments 15 days late without objection. The agreement says payments are in default if more than 10 days late. The lender rejects the seventh payment, which is also 15 da...
Citations: UCC 1-304, UCC 9-601
A secured loan agreement allows the lender to accelerate if it deems itself insecure. The debtor is current on payments, but the lender has evidence that collateral is missing and that a tax lien has been filed. What sta...
Citations: UCC 1-309
A secured loan agreement says a missed payment becomes an event of default only if the debtor fails to cure within 15 days after notice. The debtor tenders the missed payment and late charge on day 10. What is the likely...
Citations: UCC 9-601, UCC 1-304
A secured loan agreement states that the secured party may accelerate the entire unpaid balance upon default. The debtor misses a payment, the agreed cure period expires, and no waiver applies. Which statement best descr...
Citations: UCC 1-309, UCC 9-601
A secured party has a security interest in the debtor's accounts. After default, the secured party sends authenticated notices to account debtors directing them to pay the secured party. What is the secured party's best...
Citations: UCC 9-607, UCC 9-608
A secured party has repossessed collateral and scheduled a commercially reasonable sale. The debt has been accelerated. Which statement best describes the debtor's Article 9 redemption right? The question tests Article 9...
Citations: UCC 9-623
A secured party has repossessed commercial equipment and plans to sell it in a private sale after default. What is the general Article 9 notification requirement before disposition? The question tests pre-disposition not...
Citations: UCC 9-611, UCC 9-613
A secured party repossesses collateral after default and wants to sell immediately without sending ordinary disposition notification. Which kind of collateral is most likely to fall within a statutory notice exception? T...
Citations: UCC 9-611
A secured party repossesses equipment and wants to keep it in full satisfaction of the debt rather than sell it. Which statement is most accurate? The question tests strict foreclosure by acceptance of collateral. UCC 9-...
Citations: UCC 9-620, UCC 9-621, UCC 9-622
A secured party wants to perfect by filing a financing statement. Which information is generally required for a sufficient financing statement? The question tests basic financing-statement sufficiency. UCC 9-502
Citations: UCC 9-502
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