If the Collateral Is Something Other Than Inventory,a Perfected Purchase

question 124

True/False

If the collateral is something other than inventory,a perfected purchase money security interest prevails over a perfected nonpurchase money security interest in after-acquired property if it is perfected when the debtor receives possession of the collateral,or within twenty days after the debtor receives possession of the collateral.

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Definitions:

Direct Financing Lease

A lease agreement where the lessor records the present value of lease payments as a receivable rather than as a sale or lease revenue.

Lessor

The party in a lease agreement that owns the leased asset and grants the lessee the right to use the asset in exchange for lease payments.

Capital Lease

A lease agreement that grants the lessee ownership rights of the asset at the end of the lease term.

Gross Investment

The total amount spent on acquiring new assets and maintaining or upgrading existing ones, without deducting for depreciation.