Asked by Arcie Robyn on Jun 12, 2024
Verified
A typewriter,which was subject to a prior UCC security interest,was delivered to Ed Fogel for repair.Fogel,who is engaged in the business of repairing typewriters,repaired the typewriter.However,the owner of the typewriter now refuses to pay for the services performed by Fogel.The state in which Fogel operates his business has a statute,which gives Fogel a mechanic's lien on the typewriter.Fogel's mechanic's lien:
A) takes priority over a prior perfected security interest under all circumstances.
B) is subject to a prior perfected purchase money security interest under all circumstances.
C) is subject to a prior unperfected security interest where the statute is silent as to priority.
D) takes priority over a prior perfected security interest unless the statute expressly provides otherwise.
Mechanic's Lien
A legal claim against a property for unpaid construction work or supplies, giving the contractor a right to secure payment.
Perfected Security Interest
A legal state where a creditor has taken all necessary steps required by law to enforce a security interest against the debtor's collateral in case of default.
Purchase Money Security Interest
A legal claim or lien on collateral that secures payment of the debt used to buy the collateral, often applied in context with the sale of personal property.
- Examine the consequences of default and the entitlements of secured creditors during the collateral disposition process.
Verified Answer
Learning Objectives
- Examine the consequences of default and the entitlements of secured creditors during the collateral disposition process.
Related questions
Which of the Following Statements Is True Regarding a Secured ...
Which of the Following Is False Regarding a Creditor's Rights ...
Which of the Following Is True Regarding the Manner in ...
Which of the Following Is True Regarding the Court's Opinion ...
What Is the Time Period in Which a Debtor Has ...