Business Law You just recently completed a loan to Bill Beaumont, a customer, so
ID: 332234 • Letter: B
Question
Business Law
You just recently completed a loan to Bill Beaumont, a customer, so he could buy a $60,000 new car. 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 car. After several months of Bill not paying on the car, the bank decides to repossess the car and sell it to repay the defualting loan. Although the financing statement between Bill Beaumont and the bank was correctly perfected at the time it was completed. You now discover that Bill’s full name is actually William Beaumont. Is the security under the agreement still enforceable?
Explanation / Answer
No the security under agreement will not be enforceable as his name on the security agreement is not the same.
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