You are a consumer loan specialist employed by Arbor Bank. You recently complete

Question

You are a consumer loan specialist employed by Arbor Bank. You recently completed a loan to Bill Barker, one of the bank's customers so that he could buy a new $60,000 Tesla vehicle. You completed the required paperwork at the time of the loan, including a written financing statement, giving the bank a security interest in the new vehicle. After several months of Bill not making payments on the car, the bank decides to repossess the car and sell it to repay the defaulting loan. Although the financing statement between Bill Barker (debtor) and Arbor Bank (creditor) was correctly perfected at the time it was completed, you now discover that Bill Barkers full name is actually William Barker. Is the security under the agreement still enforceable?

Explanation / Answer

Security under the agreement is fully enforceable if there is any other document that proves that his nick name is Bill Barkers. If there is no document to support it, then security is not enforceable.

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