If a Bank Wants to Ensure It Will Not Have

question 49

Multiple Choice

If a bank wants to ensure it will not have to expend efforts in repossession,which of the following methods of perfection should it use?

• A)Perfection by possession.
• B)Automatic perfection.
• C)Perfection by movable collateral.
• D)Perfection by filing.
• E)A bank cannot ensure it will not have to repossess the collateral.

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Definitions:

Periodic Payment

Payments made at regular intervals, such as monthly or annually, often associated with loans or annuities.

Ordinary Annuity

Similar financial remittances effected at each segment's end over a designated time.

Periodic Payment

Regular payments made over a period, such as monthly mortgage or insurance payments.

Ordinary Annuity

Uniform compensation packages delivered upon concluding every phase over a defined schedule.