Asked by Ashley Lowell on Jul 09, 2024
Verified
Suri purchased a new laptop for $2,500 from Gadget World.To pay for it,she borrowed money from ATS Finance,which took a security interest in the laptop by entering into a security agreement with Suri.How will the security interest be perfected in this case?
Security Interest
A legal right or claim on property, granted to a creditor, ensuring the property serves as collateral for a debt and can be repossessed if the debt is not repaid.
Security Agreement
A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral for a loan.
- Comprehend the principles and procedures associated with security interest and its perfection.
Verified Answer
HM
Haile McDonaldJul 13, 2024
Final Answer :
Because this interest was a purchase money security interest and the laptop is a consumer good,the security interest would become perfected the moment it attached-that is,when Suri signed the agreement and received the laptop,and when Gadget World received payment from the finance company.
Learning Objectives
- Comprehend the principles and procedures associated with security interest and its perfection.