Wyatt needs $2,000 to go on vacation. After trying unsuccessfully to come up with a plan to obtain the money, Wyatt comes up with the perfect plan: Wyatt offers to have his mother’s jewelry collection cleaned for her, but instead, he takes the jewelry to Perfect Pawn Shop and pledges his mother’s jewelry collection as collateral for a loan of $2,000. The jewelry is worth $10,000, so Perfect Pawn Shop agrees to the deal, gives Wyatt the $2,000, and keeps the jewelry. Does Perfect Pawn Shop have a security interest in the jewelry?
Yes, because Perfect Pawn Shop gave value for the jewelry and has possession of the jewelry.
No, because no financing agreement was filed.
Yes, because the jewelry is worth much more than $2,000.
No, because Wyatt does not own the jewelry.