Asked by Suzanna Mondragon on Jul 14, 2024
Verified
Which statement is correct regarding the effect of XYZ Electronics filing a financing statement?
A) The interest was perfected.
B) The interest was guaranteed.
C) The interest was secured.
D) The interest was acknowledged.
E) There was no effect because there can only be one security interest, and the bank already had that.
Financing Statement
A legal document filed to indicate a secured interest in personal property, used to perfect a security interest under Article 9 of the Uniform Commercial Code.
Perfecting Interest
Legal steps taken to protect a secured interest in a piece of property, typically through public registration.
- Identify the necessary procedures a secured party must follow to achieve perfection of a security interest and understand the variance in methods of perfection, such as automatic perfection.
Verified Answer
MW
Monica WatersJul 15, 2024
Final Answer :
A
Explanation :
Filing a financing statement is a step in the process of perfecting a security interest, which gives the creditor priority over other creditors who claim an interest in the same collateral.
Learning Objectives
- Identify the necessary procedures a secured party must follow to achieve perfection of a security interest and understand the variance in methods of perfection, such as automatic perfection.
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