Under Article 9 of the Uniform Commercial Code, in What

question 2

Multiple Choice

Under Article 9 of the Uniform Commercial Code, in what order are proceeds from the sale of collateral by the creditor to be distributed?

• A) First, any expenses of repossessing the collateral are paid. Second, the proceeds are used to satisfy the debt. Third, any other junior liens are paid. Finally, if any proceeds remain, the debtor is entitled to them.
• B) First, the proceeds are used to satisfy the debt. Second, junior liens are paid. Third, any expenses of repossessing the collateral are paid. Finally, if any proceeds remain, the debtor is entitled to them.
• C) First, the proceeds are used to satisfy the debt. Second, any expenses of repossessing the collateral. Lastly, the debtor is entitled to remaining proceeds. Finally, if any proceeds remain, the debtor is entitled to them.
• D) First, the junior liens are paid. Second, any expenses of repossessing the collateral are paid. Third, the proceeds are used to satisfy the debt. Finally, if any proceeds remain, the debtor is entitled to them.

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Definitions:

Mechanical

Pertaining to machinery or the working parts of a machine, often involving physical movements and forces.

AWG Wiring

Wiring that is sized according to the American Wire Gauge standard, which determines the thickness of the wire based on a numerical scale.

Trailer Light Circuit

The electrical pathway that controls the lighting system on towed trailers, including tail lights and turn signals.

Gauge

An instrument or device for measuring the magnitude, amount, or contents of something, typically with a visual display of such information.