When a Consumer Gives a Creditor a Security Interest in Forthcoming

question 13

True/False

When a consumer gives a creditor a security interest in forthcoming health insurance proceeds, the creditor must file a statement with the insurance company in order to have a perfected security interest.

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Definitions:

Breach Of Contract

The violation of any agreed-upon terms or conditions in a binding contract, which can lead to legal consequences for the party in breach.

Designated Contract

A specific agreement set apart for a unique purpose or recognized formally in a particular context.

Anticipatory Breach

Repudiation of a contract before performance is due.

Void Ab Initio

A term referring to agreements or contracts that are considered null from the start due to illegality or inability to enforce.