A Business Purchases an Airplane from an Airplane Manufacturer

question 28

Multiple Choice

A business purchases an airplane from an airplane manufacturer.The business obtains a loan to purchase the airplane from a bank, which obtains a security interest in the airplane.The airplane manufacturer is paid for the airplane from of the proceeds of the loan.This is a ________ transaction.

• A)two-party secured
• B)three-party secured
• C)perfected
• D)attached

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Definitions:

Right of Way

The legal right, established by usage or granted by authority, to pass along a specific route through grounds or property owned by another.

Power Line

Electrical transmission and distribution cables that carry electricity from power plants to end users.

Recognizable Interest

An interest in property or a transaction that is legally identifiable and protectable.

Tenants in Common

A form of co-ownership where each tenant holds an undivided interest in property, but without right of survivorship.