ImaBigBank Has Extended an Operating Line of Credit to Vandenbergers

question 31

Multiple Choice

ImaBigBank has extended an operating line of credit to Vandenbergers Bulbs Ltd.In exchange,Vandenbergers had to provide an assignment of the corporation's accounts receivable from its seasonal city garden contracts.Which of the following would a business law professor most likely say with respect to the bank's position?

• A) It acquired ownership of the right to collect the assigned accounts.
• B) It alone possesses the right to collect Vandenbergers' accounts.
• C) It is using a very uneconomical method of protecting creditor rights to pledged property.
• D) It acquired possession of an assignment without obtaining right of ownership.

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