[Pottery Store] A&B Bank Loaned Money to Potter's Pottery Store

question 49

Multiple Choice

[Pottery Store] A&B Bank loaned money to Potter's Pottery Store to finance the purchase of several kilns, a delivery van, and pottery wheels. In return, Potter's granted a security interest to A&B Bank for "all equipment of Potter's". The kiln manufacturer also wants to place a security interest on the kilns and the delivery van for Potter's Pottery.
-If the bank wants to have priority in its loan to the pottery store, how should the bank perfect its interest?

• A) The interest is perfected automatically because the collateral are goods.
• B) The bank would have to file a financing statement for all items.
• C) The bank would have to make a notation on the certificate of title for the van and would have to file a financing statement on the other items.
• D) The bank could make a notation on the certificate of title for the van and on the ownership documents of the other items because they are goods used to conduct business.
• E) The bank would have to make a notation on the certificate of title for the van, but the other items would be perfected automatically.

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Definitions:

Distorted Representations

Misleading portrayals or descriptions that inaccurately depict the characteristics, abilities, or qualities of individuals or groups.

Gee's Bend

A rural community in Alabama known for its rich history and unique quilting tradition among African American residents.

African American Women

Women of African descent living in the United States, encompassing a diverse group with a rich heritage and significant contributions to American culture and history.

Quilts

Fabric creations comprised of multiple layers sewn together, often featuring intricate patterns or designs and used for warmth or as decorative items.