Which Statement Is Correct Regarding a Secured Party's Interest in Proceeds

question 84

Multiple Choice

Which statement is correct regarding a secured party's interest in proceeds when a debtor sells collateral?

• A) A secured party automatically has an interest in proceeds.
• B) A secured party has an interest in proceeds only if the proceeds are taken into the possession of the secured party.
• C) A secured party has an interest in proceeds only if a financing statement is filed on the proceeds.
• D) A secured party has an interest in proceeds only if the secured party has a signed statement from the debtor granting an interest in proceeds.
• E) The secured party may not acquire a security interest in proceeds.

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