Is the bank correct that it has priority because it has a perfected interest in the hang glider?

A) Yes, because it filed a financing statement, thus perfecting its interest.
B) Yes, even though the financing statement is filed under a correct name, the filing of the statement perfected its interest in the hang glider.
C) No, because the financing statement is filed under an incorrect name, thus perfection is likely not effective.
D) No, it takes more than simply filing a financing statement for perfection to be effective.
E) Yes, because banks are excused from minor errors in financial documents, and thus the incorrect name in the financing statement does not affect perfection.

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Henna Mirza · Accepted Answer

Final Answer : C, Explanation :  C) No, because the financing statement is filed under an incorrect name, thus perfection is likely not effective. For a security interest to be perfected, the financing statement must accurately identify the debtor. Filing under an incorrect name fails to give notice to other potential creditors about the security interest, making the perfection ineffective.

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