Sara Needs $1,500 to Buy Textbooks and Other School Supplies

question 40

Essay

Sara needs $1,500 to buy textbooks and other school supplies. Tomas agrees to loan Sara $1,500, accepting as collateral Sara's car. They put their agreement in writing and sign it. Sara keeps possession of the car. Does Tomas have an enforceable security interest? How can Tomas let other creditors know of his interest in the car?

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Definitions:

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government and the rights of the citizens.

Contract Clause

A provision found in the U.S. Constitution that prohibits states from enacting laws that impair the obligation of contracts.

Public Charters

Special flight operations sanctioned by the government, allowing operators to provide services that are normally outside of their standard offerings.

Federal Law

Laws passed by the national government of a country, which are supreme and have precedence over state laws in matters within the jurisdiction of the national government.