Asked by Jenny Mclin on Jul 30, 2024
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When a creditor sells a consumer good to a debtor on a credit basis or a creditor extends a loan to a debtor for the purchase of a consumer goods,the security interest does not perfect automatically; instead,the secured party must file a financing statement in order for the security interest to perfect.
Financing Statement
A document filed to give public notice of a secured party's interest in the debtor's collateral.
Security Interest
A legal claim or right granted over assets to secure the performance of an obligation, usually repayment of a loan.
Secured Party
An entity that holds an interest in a secured transaction, typically having a claim to a debtor's collateral in case of default.
- Recognize the criteria essential for developing and advancing a security interest.
- Acquire knowledge on how security interests are perfected and the effects thereof.
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Learning Objectives
- Recognize the criteria essential for developing and advancing a security interest.
- Acquire knowledge on how security interests are perfected and the effects thereof.
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