Which of the Following Is True About Possession of Collateral

question 29

Multiple Choice

Which of the following is true about possession of collateral by secured party as public notice?

• A) Change of possession is a convenient way for perfecting most security interests in consumer goods.
• B) Possession of collateral by the creditor is rarely executed to perfect a security interest in chattel paper and negotiable documents of title.
• C) Possession is a possible way of perfecting a security interest in inventory which is achieved through a field warehousing arrangement.
• D) Possession by the creditor is a practicable way of perfecting a security interest in equipment or farm products.

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Definitions:

Deuterostomes

A major group of animals in which the anus develops from the first opening in the embryo, with humans and starfish as examples.

Chordates

A phylum of animals that, at some stage in their life cycle, possess a notochord, a hollow dorsal nerve cord, pharyngeal slits, endostyle, and a post-anal tail.

Lophotrochozoa

A group of protostome animals within the Ecdysozoa, including mollusks, annelids, and several other phyla, characterized by specific larval and ciliary features.

Madreporite

The madreporite is a sieve-like structure found in echinoderms, such as starfish, that serves as an entry point for water into the water vascular system.