Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
9 Cards in this Set
- Front
- Back
|
XYZ Inc. grants Bank a security interest in equipment located in Mississippi. XYZ, Inc. has places of business in several states, its chief executive office is in LA, and its articles of incorporation are filed in TX. The law of TX governs perfection of the security interest because XYZ was organized under the laws of TX. Therefore, if Bank wishes to file a financing statement to perfect its security interest in the equipment, it must file its financing statement in _____.
|
Texas
|
|
|
XYZ is an unregistered partnership and it grants Bank a security interest in equipment located in Mississippi. XYZ is located in LA, has more than one place of business, and its chief executive office is LA. If the bank wishes to file a financing statement to perfect its security interest in the equipment, it must file its financing statement in ____.
|
LA
|
|
|
Bank wishes to file a financing statement to perfect its security interest in Debtor's equipment. Where must the bank file?
|
In the proper state. If bank files in the wrong state, its security interest will not be perfected.
|
|
|
B does home remodeling under oral contracts in which her customers promise to pay her in the future for her services rather than paying her immediately (these promises constitute "accounts"). B is in need of cash and sells her outstanding accounts to A, who immediately pays B. Does Chapter 9 apply?
|
Even though this is an outright sale of the accounts Ch 9 is triggered and A must comply with Ch 9 to protect its interest against competing third parties.
|
|
|
Matt purchases a $1,000 stereo on credit from Radio Hut and signs a security agreement giving Radio Hut a security interest in the stereo. Does Radio Hut have a PMSI?
|
Yes since in reality, its credit enabled Matt to purchase the stereo.
|
|
|
Susan goes to the Bank and asks Bank for $1,000 to purchase a stereo. Bank gives Susan the money, Susan signs a security agreement giving Bank a security interest in the Stereo, and Susan purchases the stereo from Radio Hut using that $1,000. Does Bank have a PMSI in the stereo?
|
Yes since it advanced the money that was used to purchase the stereo.
|
|
|
Alice goes to Bank and asks for $1,000 to purchase a stereo. Bank gives alice the money and Alice signs a security agreement giving Bank a security interest in the stereo to be purchased. Alice gambles away the $1000. Alice then goes to Radio Hut and buys a $1000 stereo on credit from the store, and signs a security agreement giving Radio Hut a security interest in the stereo. Who has the PMSI?
|
Radio Hut because they advanced the funds that were actually used to pay for the stereo.
|
|
|
Brian wants to borrow $1000 from Bank. Bank agrees to give Brian the money if he will give Bank a security interest in a stereo that he already owns. Does Bank have a PMSI?
|
Although Bank has a security interest, it will not have a PMSI in the stereo since Brian already owned the stereo and so Bank did not advance the funds that were used to purchase it.
|
|
|
W buys a computer and some accompanying software from Computer Hut on credit and signs a security agreement giving Computer Hut a security interest in the computer and software. Does Computer Hut have a PMSI in the computer and software?
|
As long as the software was bought for use on the purchased computer.
|
