Asked by Melainah Alford on May 31, 2024

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Bill lends Harvey $1,500 and the loan is secured by Harvey's furniture. If Bill files a financing statement on January 30, 2012 how long will it be effective?

A) Until July 30, 2012.
B) Until January 30, 2017.
C) Until January 30, 2032
D) For 30 days.

Financing Statement

A document filed to give public notice that a lender has a security interest in a borrower's personal property.

Effective

In force or operational; commonly refers to the date on which a law, regulation, or agreement is applied or becomes operational.

Secured

Pertaining to a loan or obligation that is backed by collateral to reduce the risk of lending.

  • Determine the approaches to perfect a security interest in diverse forms of collateral.
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ZK
Zybrea KnightJun 04, 2024
Final Answer :
B
Explanation :
Under the Uniform Commercial Code (UCC), a financing statement is effective for five years from the date of filing. Therefore, if Bill files the financing statement on January 30, 2012, it will be effective until January 30, 2017.