A Perfected Purchase Money Security Interest in Inventory Is Likely

question 49

Multiple Choice

A perfected purchase money security interest in inventory is likely to have priority over a conflicting security interest in the same inventory if the:

• A) purchase money security interest is perfected three months after the debtor receives possession of the inventory.
• B) purchase money secured party gives an oral notification to the prior secured creditor before the debtor receives the inventory.
• C) holder of the competing security interest received notification within eight years before the debtor receives the inventory.
• D) notification states that the person expects to acquire a purchase money security interest in inventory of the debtor and describes the inventory.

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Definitions:

Pollution

The introduction of contaminants into the natural environment that cause adverse change, often affecting air, water, and soil quality.

Benign Materials

Substances that are non-toxic and pose no harm to health or the environment.

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A process in which complex molecules are formed from simpler substances.

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A statin medication used to prevent cardiovascular disease and to treat abnormal lipid levels by inhibiting an enzyme involved in lipid production.