When the Filing of a Financing Statement Is Defective: ______

question 22

Multiple Choice

When the filing of a financing statement is defective: ______.

• A) the security interest is lost.
• B) the filing fails to perfect the security interest.
• C) the security interest is perfected through the court's application of equitable principles.
• D) the public notice of the creditor's interest is still effective.

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Definitions:

Securities

Financial instruments that represent ownership positions, debts, or rights to ownership, such as stocks, bonds, and options.

De Jure

Pertaining to law or legal situations, often used to describe something that is legally recognized or established by law.

De Facto

A term used to describe practices or conditions that exist in reality, even if they are not officially recognized by laws.

Incorporators' Addresses

The physical or mailing addresses of the individuals who file the articles of incorporation, legally founding a corporation.