FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Secured Transactions and Bankruptcy

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

True/False

Review LaterAdd Note

Review Later

The Uniform Commercial Code does not define loan default.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Essay

Review LaterAdd Note

Review Later

What are the two general goals of bankruptcy laws?

Correct Answer

verified

First,bankruptcy laws provide protection...

View Answer

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Once a financing statement has been filed with the correct agency,how long is the statement valid without renewal?

In a dispute between two secured parties with unperfected security interests,which of the following is true?

An agreement in which the debtor gives a secured interest to the secured party is a(n) ________.

Which type of payment does an insolvent debtor make that gives preferential treatment to one creditor over another creditor?

Which of the following is a correct statement regarding actions that may be taken while an automatic stay is in effect in a Chapter 7 proceeding?

If a debtor defaults,what type of court order does the secured party need to take possession of the collateral?

Mindy liked to spend money and had a large amount of consumer debt for items such as jewelry,clothing,a personal watercraft,and a new car.Mindy was having problems making her credit card payments as they became due.She wanted,however,to make every effort to pay her debts.On September 1 she repaid a loan to Friendly Jewelry Store because she wanted to remain on good terms with the manager.Unfortunately,Mindy was simply unable to continue making payments; and on November 1 of that same year,she filed a voluntary petition for bankruptcy relief under Chapter 7.A number of her creditors complained because Friendly Jewelry Store received more from the Mindy's early payment than it would have received in bankruptcy proceedings.Which of the following is the most likely result of a claim of preferential payment based on the payment to the jewelry store?

Bankruptcy law is state law.

Overextended Debtor.Dennis purchased a big-screen television from ABC Electronics and financed the purchase through ABC Electronics based on an agreement granting ABC Electronics a security interest in the television and requiring that Dennis make monthly payments.Three months later,Dennis was unable to continue making payments on the television because he had bought a boat,a new car,an expensive engagement ring for his girlfriend,and some other items.The manager from ABC Electronics called and asked Dennis to return the television.Dennis refused on the basis that ABC Electronics never perfected its interest in the television.Which of the following is the correct designation for the television in the agreement between Dennis and the electronic store?

What type of collateral must be perfected through possession?

Claims to Funds.Paul had a great job as a bank executive.Unfortunately,his bank came under scrutiny by federal regulators,and although Paul had done nothing illegal,he ended up being fired.Unfortunately for Paul,he had a number of debts.Among his assets were a house worth $250,000 on which he owed $150,000 to a bank that held a security interest; three vehicles; an expensive watch worth $5,000; and $120,000 in an Individual Retirement Account "IRA".He owed $900 per month in child support to his ex-wife Suzy and was behind on payments in the amount of $1,800.He also owed $2,000 in wages consisting of four months of back pay to Bob who took care of Paul's landscaping needs and swimming pool care.Unable to find a job and believing that he had no other option,Paul filed for Chapter 7 bankruptcy.All creditors angrily demanded payment from liquidation of Paul's assets.Paul,on the other hand,claims that he needs all the above-mentioned assets and that he should not have to give up anything.Only federal bankruptcy exemptions apply to Paul's case.Which of the following is true regarding Suzy's and Bob's claims as unsecured creditors?

Repossession.Tina sold used vehicles.She sold a used pick-up truck to Joan and a used convertible to Barry.She properly obtained a security interest in both vehicles.Both Joan and Barry defaulted on payments owed to Tina for the vehicles.Tina told her assistant Samantha that the only legal remedy was repossession; that she was going after the vehicles; and that Samantha should call law enforcement if she did not show up at the office by 10 a.m.for the next few mornings.Tina decided that she would repossess Joan's pick-up at Joan's house.Therefore,Tina slipped into the driveway at midnight one night and started the engine.Joan immediately ran out and confronted Tina.Tina shoved Joan away and drove off in the pick-up truck.Tina was able to repossess Barry's convertible in a public parking lot with no altercation with him.Which of the following is true regarding Tina's taking possession of Barry's convertible?

Once a voluntary liquidation proceeding under Chapter 7 is filed,the debtor's prepetition assets form the ________.

Under which test may a court presume that an individual is abusing the bankruptcy provisions of Chapter 7 when an individual's debt is primarily consumer debt and the individual's income is above the median income in his or her state?

The least common way to perfect an interest is to file a financing statement with a state agency.

Which of the following is true regarding the Uniform Commercial Code's definition of default?

Article 2(A)of the Uniform Commercial Code governs secured transactions in personal property.

Failure to make payments on a loan is ________.