Which of the Following Are Necessary for a Security Interest

question 83

Multiple Choice

Which of the following are necessary for a security interest to attach:

• A) the security agreement must be signed by the customer
• B) the seller must have provided value
• C) the customer must have legal, transferable rights in the collateral
• D) all of the other specific choices are correct
• E) none of the other specific choices are correct

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Definitions:

Freeze-Out

In corporation law, a type of oppression by which only minority shareholders are forced to sell their shares.

Right Of Appraisal

The process to determine the fair market value of an asset by a neutral third party or appraiser.

Greenmail

A situation where a company buys back its own shares from a potential acquirer at a higher price than the market value to prevent a hostile takeover.

Lock-Up Option

A contractual agreement where shareholders are prohibited from selling their shares for a specified period following an initial public offering (IPO).