Which of the Following Is True Regarding a Security Interest

question 30

Multiple Choice

Which of the following is true regarding a security interest in consumer goods?

• A) A financing statement must be filed in order to perfect a security interest in consumer goods.
• B) Under federal consumer protection legislation, a seller may not hold a security interest in consumer goods.
• C) Under most state laws, a seller may not hold a security interest in consumer goods.
• D) When a creditor sells a consumer good to a debtor on a credit basis, the security interest perfects automatically.
• E) When a creditor sells a consumer good to a debtor on a credit basis, the security interest is perfected by the seller's possession.