Asked by Anthony Rabbit on Jul 06, 2024
Verified
Rolling Funds perfects a security interest in Steel Mill Inc.'s equipment by filing. When Steel Mill finally pays the debt, the debtor is entitled to the filing of
A) none of the choices.
B) a termination statement.
C) a confirmation request.
D) an amendment.
Termination Statement
A document filed to indicate that a previously filed security interest is no longer valid.
Filing
The process of submitting documents to a specified entity or office for official recording and recognition.
Amendment
A formal change or addition made to a document, law, or constitution.
- Identify the rights and remedies available to secured parties upon a debtor's default.
Verified Answer
SB
soumya basavojuJul 09, 2024
Final Answer :
B
Explanation :
When a debtor pays off the debt secured by a security interest, the secured party is generally required to file a termination statement to indicate that the security interest is no longer effective. This helps clear the public record of the lien against the debtor's property.
Learning Objectives
- Identify the rights and remedies available to secured parties upon a debtor's default.