Five types of material goods can be used as security services: (1) consumer goods, (2) equipment, (3) agricultural products, (4) inventory and (5) devices. Five types of intangible assets may constitute a guarantee: (1) accounts, (2) general intangible assets (e.g.B. patents), (3) securities, (4) chat paper and (5) instruments. Section 9 expressly allows the debtor to grant security interest for acquired assets. As noted above, a security agreement cannot be considered valid if the guarantees are not properly described. In particular, security descriptions should not be overly broad or general. Too broad a description may include a lump sum description or call the debtor “all assets.” The “d” selection is correct. A funding statement focuses on developing a security interest; The filing of a funding return is not applicable to the seizure. Therefore, the testimony is a misrepresentation. However, Declaration II is correct. A funding return is valid for five years, but can be renewed for a further five years by filing a continuation declaration within six months of the five-year period.
Successive continuation declarations are submitted before the end of each five-year period. The “a,” “d” and “c” choices are wrong. The code expressly excludes a lessor`s right to pledge, the transfer of a right to a salary and the sale of cat paper in connection with the sale of stores from which it emerged. A valid security agreement consists at least of a description of the guarantees, a declaration of intent to generate security interests and all signatures of all parties involved. However, most security agreements go beyond these essential requirements. Many include alliances (or debtor bonds) and guarantees (guarantees). Examples of warranties or warranties could be as follows: Drew purchased a computer for hale Corp.`s personal use for $3,000. Drew paid $2000 in cash and signed a security contract for the balance.
Hale did file the security agreement. Drew had fallen behind in paying the balance of the purchase price. Hale asked Drew to pay the balance. When Drew refused, Hale peacefully took over the computer. The selection “d” and “a” is wrong. A portion of debt security can be automatically refined in the event of foreclosure, but only if the receivables transferred do not constitute a substantial part of the receivables of the beneficiary of the transfer. Here Winslow Co. has surrendered all the receivables, so the automatic pefection does not apply. A wide variety of material and intangible goods can be used as collateral. These include the following products: the choice “c” is correct.
The security interest of the purchase money (PMSI) on non-inventory products prevail over all other security interests in the same security if the PMSI is perfected within 20 days of receiving the debtor`s possession. Here, the PMSI was deposited 9 days after the possession of the debtor`s non-inventory goods. The “b” selection is correct. Seizure is the process in which a security interest is created to give the creditor rights against the debtor.