Asked by Daniel Sanchez on Jul 12, 2024
Verified
The bank should have done what to terminate its interest in any property belonging to Morgan?
A) The bank should have filed a termination statement within 20 days.
B) The bank should have filed a termination statement within one month.
C) The bank should have filed a waiver statement within 20 days.
D) The bank should have filed a waiver statement within one month.
E) The bank should have filed a stopgap statement by the time Morgan's next payment was due had she not paid off the loan.
Termination Statement
A document filed to indicate the end of a secured party's interest in the debtor's collateral, effectively releasing the security interest.
Waiver Statement
A legal document in which a person voluntarily relinquishes a known right, claim, or privilege.
- Recognize the implications of failing to sufficiently perfect a security interest.
Verified Answer
KG
Kanika GoinsJul 18, 2024
Final Answer :
A
Explanation :
The bank should have filed a termination statement within 20 days to effectively terminate its interest in any property belonging to Morgan. This is a common procedure in secured transactions to release a security interest once the obligation is fulfilled.
Learning Objectives
- Recognize the implications of failing to sufficiently perfect a security interest.
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