Consider the Following Statements About the Use of Personal Property

question 41

Multiple Choice

Consider the following statements about the use of personal property as security for a creditor in a creditor-debtor transaction.Indicate the false statement.

• A) If the transaction involves the use of consumer goods as collateral, upon default of payment by the debtor, the creditor can seize the goods and sell them, but also always retains the right to sue the debtor on his personal covenant to pay for any deficiency.
• B) Regardless of the type of personal property involved, whether tangible or intangible, as long as it is being used as security, then the transaction is governed by the Personal Property Security Act, and thus an unpaid creditor may be able to repossess them.
• C) Real estate professionals need to be aware of the Personal Property Security Act because items that constitute fixtures under real property law may also constitute chattel security, and thus an unpaid creditor may be able to repossess them.
• D) Before a creditor who has been promised an interest in personal property as security can claim priority rights, two processes must have taken place: the security interest must have attached to the collateral item, and the security must have been perfected.
• E) If the required procedures have taken place, a potential buyer from an unscrupulous debtor who has already given personal property as security will be protected; i.e., the creditor will either have registered his interest in the public registry or will have actual possession of the collateral.

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Definitions:

Adapt Style

The ability to modify one's behavior or approach to suit different situations or the needs of various individuals, particularly relevant in leadership and communication.

Followers Competence

The skills, knowledge, and abilities that followers bring to a group or organization, affecting its overall performance and success.

Heifetz

Refers to Ronald Heifetz, known for his work on leadership, especially the concept of adaptive leadership which focuses on facilitating change.

Adaptive Leadership

A leadership framework focusing on a leader's ability to adapt to changing circumstances and to foster adaptability among followers.