[Overextended Debtor] Michael Bought a Flat Screen Television for His

question 21

Multiple Choice

[Overextended Debtor] Michael bought a flat screen television for his living room from ABC Electronics, and financed the purchase through ABC Electronics. Later, Michael bought a boat, a new car, and an expensive engagement ring for his girlfriend, and found he was unable to continue making payments on the television. The manager of ABC Electronics called 60 days after the sale and asked Michael to return the television. Michael refused on the basis that ABC Electronics never perfected its interest in the television. He also explained that he had later granted a secured interest in the television along with his other goods to XYZ Credit in return for a loan. No financing statement was filed on behalf of ABC Electronics although XYZ Credit, with no knowledge of any interest of ABC Electronics, did file a financing statement.
-What is the term for the type of agreement Michael had with ABC Electronics?

• A) A pledged money interest.
• B) A collateralized interest.
• C) A purchase-money security interest.
• D) A security perfection interest.
• E) A cash deferred security interest.

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