Review Questions and Probl 1. Match each term in Column A with the appropriate 3

ID: 340089 • Letter: R

Question

Review Questions and Probl 1. Match each term in Column A with the appropriate 3. statement in Column B. Created when a creditor's security interest covers after- acquired collateral or future advances or both (1) Unsecured creditor (a) (2) Redemption (b) Exists when either a seller or lender, as a secured party, lends the money that enables the debtor to buy the collateral (3) Strict foreclosure (4) Chattel paper (c) Debtor may buy back (d) The document that must be filed to perfect a security 4. interest Occurs when collateral is sold or disposed of A party whose only collateral is the debtor's promise to repay (e) (5) Foreclosure (6) Floating lien (7) Security agreement (g) Forced sale (f) (8) Financing statement (h) Creditor retains possession in satisfaction of claim (9) Proceeds (i) A writing that evidences both an obligation to pay money and a security interest or lease (10) Purchase-money )An essential document that security interest must be signed by the debtor if he/she retains possession of the collateral if a security interest is to be created 5.

Explanation / Answer

(1) Unsecured creditor

(f) A party whose only collateral is the debtor’s promise to repay

(2) Redemption

(h) Creditor retains possessions in satisfaction of claim

(3) Strict foreclosure

(4) Chattel paper

(i) A writing that evidences both an obligation to pay money and a security interest or lease

(5) Foreclosure

(g) Forced sale

(6) Floating lien

(a) Created when a creditor’s security interest covers after acquired collateral or future advances or both

(7) Security agreement

(j) An essential document that must be signed by the debtor if he/she retains possession of the collateral if a secured interest is to be created

(8) Financing statement

(d) The document that must be filed to perfect a security interest

(9) Proceeds

(e) Occurs when collateral is sold or disposed of

(10) Purchase-money security interest

(b) Exist when either a seller or lender, as secured party, lends the money that enables the debtor to buy the collateral