Which of the following is true regarding a security interest in consumer goods?

A) A financing statement must be filed in order to perfect a security interest in consumer goods.
B) Under federal consumer protection legislation, a seller may not hold a security interest in consumer goods.
C) Under most state laws, a seller may not hold a security interest in consumer goods.
D) When a creditor sells a consumer good to a debtor on a credit basis, the security interest perfects automatically.
E) When a creditor sells a consumer good to a debtor on a credit basis, the security interest is perfected by the seller's possession.

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katia cuenca noyola · Accepted Answer

Final Answer : D, Explanation :  When a creditor sells a consumer good to a debtor on credit, the security interest generally perfects automatically. This is an exception to the general rule that a financing statement must be filed to perfect a security interest.

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