Asked by Demia Kelly on Jul 25, 2024
Verified
Which of the following is true regarding a secured party's interest in proceeds?
A) A secured party automatically has an interest in proceeds for a limited amount of time.
B) A secured party has an interest in proceeds,but only if the secured party takes possession of the proceeds.
C) A secured party has an interest in proceeds,but only if a financing statement is filed on the proceeds.
D) A secured party has an interest in proceeds,but only if the secured party takes possession of the proceeds,or if the secured party files a financing statement on the proceeds.
E) The secured party may not acquire a security interest in proceeds unless a new agreement regarding the proceeds is reached with the debtor.
Financing Statement
A document filed to give public notice of a security interest in collateral, providing information about the debtor, secured party, and collateral.
Proceeds
The amount of money received from a transaction, especially after selling an asset or completing a deal.
- Understand the legal steps necessary for a secured party to protect their interest.
Verified Answer
RS
Rajvir SinghAug 01, 2024
Final Answer :
A
Explanation :
When a debtor sells collateral,he or she receives proceeds,something that is exchanged for collateral.The secured party automatically has an interest in proceeds for a limited amount of time.
Learning Objectives
- Understand the legal steps necessary for a secured party to protect their interest.
Related questions
Which of the Following Is Defined as the Series of ...
A Secured Party's Interest in Proceeds Lasts for ________ After ...
To Create an Enforceable Security Interest Between Mortgage Bank and ...
Which of the Following Statements About Security Agreements Is False ...
Sara Needs $1,500 to Buy Textbooks and Other School Supplies ...