Asked by Nohely Ortiz on Jul 09, 2024
Verified
If the bank wants to have priority in its loan to the pottery store, how should the bank perfect its interest?
A) The interest is perfected automatically because the collateral are goods.
B) The bank would have to file a financing statement for all items.
C) The bank would have to make a notation on the certificate of title for the van and would have to file a financing statement on the other items.
D) The bank could make a notation on the certificate of title for the van and on the ownership documents of the other items because they are goods used to conduct business.
E) The bank would have to make a notation on the certificate of title for the van, but the other items would be perfected automatically.
Financing Statement
A document filed to give public notice of a secured party's interest in the debtor's personal property, used in the U.S. under the Uniform Commercial Code.
Certificate of Title
An official document indicating ownership of property, such as real estate or a vehicle.
Perfect
To complete or make flawless; often used in legal contexts to denote the finalization of a right or claim.
- Gain insight into the requisite procedures for perfecting a security interest, highlighting filing and possession practices.
Verified Answer
Learning Objectives
- Gain insight into the requisite procedures for perfecting a security interest, highlighting filing and possession practices.
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