Asked by Allison Bottorff on Jul 29, 2024
Verified
What is the term for the type of agreement Michael had with ABC Electronics?
A) A pledged money interest.
B) A collateralized interest.
C) A purchase-money security interest.
D) A security perfection interest.
E) A cash deferred security interest.
Purchase-Money Security Interest
A security interest or claim on property that secures repayment of the money used to purchase the property, commonly seen in secured transactions.
Financing Statement
A document filed to give public notice of a security interest in personal property, securing payment or performance of an obligation.
- Gain insight into the structure and ranking of purchase-money security interests.
Verified Answer
JP
Josthel PiresJul 31, 2024
Final Answer :
C
Explanation :
The term for the type of agreement Michael had with ABC Electronics is a Purchase-Money Security Interest (PMSI), which is a special type of security interest that gives the creditor (in this case, ABC Electronics) a priority in the collateral (the television) that was purchased with the creditor's financing.
Learning Objectives
- Gain insight into the structure and ranking of purchase-money security interests.
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