Asked by Eboni Warren on Apr 27, 2024
Verified
A secured party's interest in proceeds lasts for ________ after the debtor receives the proceeds.
A) three years
B) one year
C) 180 days
D) 30 days
E) 10 days
Proceeds
Refers to the money or other benefits received from a transaction or event.
180 Days
A time period equivalent to roughly six months, often referenced in the context of deadlines or durations for specific actions or conditions.
Debtor
An individual or entity that owes money to another individual or entity, known as the creditor.
- Acquire knowledge of the legal actions required for a secured party to preserve their interest.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
E
Explanation :
Under the Uniform Commercial Code,the secured party's interest in proceeds lasts for only ten days after the debtor receives the proceeds.At that time,the secured party will typically need to file a new financing statement.The parties may also agree in the security agreement that there will be extended coverage of interest in the proceeds.
Learning Objectives
- Acquire knowledge of the legal actions required for a secured party to preserve their interest.
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