Examlex

Solved

A Buyer in the Ordinary Course of Business Takes Collateral

question 44

True/False

A buyer in the ordinary course of business takes collateral (other than farm products) free of any security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.


Definitions:

Discount Rates

The interest rate used to discount future cash flows to their present values in order to evaluate investments or projects.

EAR

Effective Annual Rate, which is the interest rate on a loan or financial product restated from the nominal interest rate as an annual rate compounded annually.

APR

The annual interest rate applied to borrowing or generated from an investment.

Compounding

The process of accumulating interest in an investment over time to earn more interest.

Related Questions