Asked by hannah mazzeo on Jun 12, 2024
Verified
A creditor who sells consumer goods to a consumer on credit has a purchase money security interest in the goods.
Purchase Money
Funds used specifically for buying an asset, often in the context of money borrowed to purchase real estate.
Security Interest
A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.
Consumer Goods
Products that are purchased for personal or household use, rather than for manufacturing or reselling.
- Acquire knowledge about the rights and remedies accessible to creditors in instances of debtor default, encompassing the recovery and disposal of collateral.
Verified Answer
GT
gavin thompsonJun 15, 2024
Final Answer :
True
Explanation :
A creditor who sells goods to a consumer on credit,or who lends money to enable a consumer to buy goods,can obtain limited perfection of a security interest merely by attaching the security interest to the goods.A creditor under these circumstances has what is called a purchase money security interest in consumer goods.
Learning Objectives
- Acquire knowledge about the rights and remedies accessible to creditors in instances of debtor default, encompassing the recovery and disposal of collateral.
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