Donaldo China Inc Is an Importer of Plates Operating in Toronto

question 48

Multiple Choice

Donaldo China Inc is an importer of plates operating in Toronto. It borrowed $100 000 from Barings Bank and, in a written agreement, gave the Bank a security interest in its inventory. The Bank filed a financing statement to register its security interest for two years in 2007. The Bank's registration expired in December 2009. In April 2010, Donaldo becomes bankrupt. A trustee in bankruptcy is appointed to administer the estate of Donaldo. Which of the following statements is TRUE?

• A) Barings's security interest was perfected so it is can be enforced against Donaldo's assets even though Donaldo is bankrupt.
• B) Because Barings's interest had attached, it is enforceable against third parties like the trustee in bankruptcy.
• C) The trustee in bankruptcy will treat Barings's security claim as an unsecured debt.
• D) Because Barings's has a security interest, the trustee has a discretion to treat it as a secured creditor.
• E) None of the above.

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Definitions:

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Waste Reduction

The process of minimizing the amount of waste generated by reducing, reusing, and recycling materials.

Future Search Conferences

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The process by which organizations adapt to new conditions, restructure, or alter their strategies, structures, or processes to improve effectiveness.