[Dirty Laundry] Morgan Planned to Start Her Own Laundry Business

question 12

Multiple Choice

[Dirty Laundry] Morgan planned to start her own laundry business. She borrowed $60,000 from ABC Bank. She used her car and home as collateral and also gave ABC Bank an interest in any property she acquired after the security interest was made. The bank perfected its interest. Morgan purchased a new computer from XYZ Electronics for use in her business. XYZ obtained a purchase money security interest on the computer. Morgan was having problems with cash flow and failed to make payments to XYZ Electronics on the new computer. After the sale and before Morgan stopped making payments, XYZ had filed a financing statement. The electronics store sought to repossess the computer, but the bank opposed that. Morgan's business picked up and she was able to completely repay her loan to the bank and to XYZ. She requested that the bank discontinue its security interest, but the bank did not do so as requested by Morgan, and still had not done so 45 days after Morgan had paid off the loan and requested that the bank terminate its interest.
-________ property is the proper designation for any equipment subject to the bank's security interest that Morgan obtains after the initial loan agreement.

• A) After-acquired
• B) Post-dated
• C) Cover
• D) Post-security
• E) Valid

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Definitions:

Personal Identities

The concept refers to an individual's unique sense of self, shaped by personal experiences, values, and social relationships.

Collectivists

Individuals or societies that prioritize the group over the individual, emphasizing community, cooperation, and interdependence.

Group Judgments

The phenomenon where the collective opinion or decision of a group is influenced by factors such as group dynamics, social pressure, and consensus-seeking behaviors.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors, without direct experience.