To be effective against third parties, such as other creditors and people to whom the collateral may be sold or transferred, the secured party must the security interest. Multiple Choice itemize subrogate perfect enforce attach < Prev 12 of 18 Next >
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Part 1. Select ALL the direct securities from the list below. Intellectual property Personal guarantees Buildings Corporate guarantees Inventory Part 2 Which of the following does NOT describe the fixed charge of security? The financial institute has the legal rights to the asset. The borrower can trade its assets unless there's a default on the loan payment. Securities with fixed charges are usually made up of non-current assets. The financial institute can take possession of the asset to settle the debt in case of loan default. Part 3 Which of the following is typically used as floating charge security? Letter of comfort Land Machinery Accounts receivable Part 4 If a loan is secured by a limited corporate guarantee, what will happen when the borrower is unable to repay the debt? The owner of the company will be personally responsible for completing the loan obligations. The guarantor will cover all the liabilities of the borrower regardless of the amount. The lender has the right to pursue the assets of the company within a specific dollar amount. Both the company and the company owner may be pursued to fulfill the debt obligation. Part 4a. Which of the following security assets are considered personal property? Select ALL correct answers. Consumer goods Factories Office buildings Land Bonds and equities
Rachel G.
Steven Light bought a $55,050 wedding ring for his wife, Sherri Light, on credit from Royal Jewelers, Inc., a store in Fargo, North Dakota. The receipt granted Royal a security interest in the ring. Later, Royal assigned its interest to GRB Financial Corp. Steven and GRB signed a modification agreement changing the repayment terms. An attached exhibit listed the items pledged as security for the modification, including the ring. Steven did not separately sign the exhibit. A year later, Steven died. Royal and GRB filed a suit in North Dakota state court against Sherri, alleging that GRB had a valid security interest in the ring. Sherri cited UCC 9-203, under which there is an enforceable interest only if "the debtor has authenticated a security agreement that provides a description of the collateral." Sherri argued that the modification agreement did not "properly authenticate" the description of the collateral, including the ring, because Steven had not signed the attached exhibit. The court issued a judgment in GRB's favor. Sherri appealed. Issue: Was GRB's security interest in the ring valid and enforceable? Decision: Yes. The North Dakota Supreme Court affirmed the lower court's judgment. Questions to answer: Do you agree or disagree with the decision that was made by the courts? Why or why not? Why do you think Sherri felt that she was able to appeal? Was her decision impractical? Why? What implications do you think his death should have since he gave Sherri the ring as a gift? Should she still be responsible to pay the remaining balance? Discuss the ethical implications that you believe are at play with this case.
Akash M.
Which of the following would not be considered collateral used in a security interest? Multiple Choice Goods Intangibles Proceeds Indispensable paper Lost profits
Adi S.
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