A Security Interest

question 63

Multiple Choice

A security interest:

• A) is an interest only in personal property to secure payment or performance of an obligation.
• B) is effective against third parties, but not the debtor, when it "attaches."
• C) may arise in fixtures under UCC Article 9.
• D) in fixtures, even if perfected, will not have priority over a mortgage in the real property to which the goods are attached.

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Definitions:

Donee Beneficiary

A third party who benefits from a contract made between two other parties, intended by those parties to receive a benefit from the contract.

Delegation of Duty

The act of assigning responsibility or authority from one person to another to perform a specific task or duty.

Assignment

The transfer of rights, property, or obligations from one party to another.

Language

is a system of communication used by a particular community or country, consisting of written, spoken, or signed words and the methods of combining them to create meaning.