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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Definitions:

Heart Attack

A medical condition that occurs when the blood supply to a part of the heart is interrupted, causing heart cells to die.

Malignant Tumor

A cancerous growth that can invade and destroy surrounding tissue and has the potential to spread to other parts of the body.

Atherosclerosis

A cardiovascular disease where arteries narrow due to the accumulation of fatty deposits on their inner walls.

Blood Vessels

The tubular structures carrying blood through the tissues and organs; a vein, artery, or capillary.