Asked by Joanna Harrison on Jun 04, 2024
Verified
To pay tuition at City College, Dora borrows funds from Equity Credit and gives as security a note on which Dora is the payee. Equity Credit's loan officer agrees to hold the note as collateral. The lender does not file a financing statement. Equity Credit's security interest is perfected because
A) the lender possesses the note.
B) default on a student loan is not a credible option.
C) the collateral is intangible.
D) Dora's other creditors are not aware that Equity Credit holds the note.
Perfected
In legal terms, refers to a secured interest in a piece of property that has been properly filed or registered, ensuring priority over claims from other creditors.
Financing Statement
A document filed by a secured creditor to give public notice of their security interest in a debtor's personal property.
Note
A brief record of facts, topics, or thoughts written down as an aid to memory.
- Understand the various ways a security interest can attach to collateral and the significance of possession in perfection.
Verified Answer
Learning Objectives
- Understand the various ways a security interest can attach to collateral and the significance of possession in perfection.
Related questions
A Tangible or Electronic Record That Evidences Both a Monetary ...
Bill Lends Harvey $1,500 and the Loan Is Secured by ...
________ Is a Writing That Indicates Both a Monetary Obligation ...
Which Statement Is Correct Regarding a Secured Party's Interest in ...
Anna Runs a Business in Oklahoma and Purchases Goods to ...