Question
1. Aubrey has been accepted into medical school, a most expensive undertaking. Aubrey has student loans and grants that pay part of the expense, but
1. Aubrey has been accepted into medical school, a most expensive undertaking. Aubrey has student loans and grants that pay part of the expense, but not all; she still needs $5,000. Aubrey asks her family friend, Clara, if Aubrey can borrow $5,000 and offers to pledge her mothers diamond necklace to ensure she repays the loan. Clara agrees and gives Aubrey $5,000. Aubrey insists that Clara take the diamond necklace and keep it until Aubrey repays all of the $5,000. To make sure that Claras security interest is perfected, Clara needs to:
file a written security agreement and financing statement, listing the necklace as collateral on both.do nothing, because she has possession of the necklace.
file a written security agreement listing the necklace as collateral.
file a written financing statement listing the necklace as collateral.
2.
Myra purchases a refrigerator from Howard Appliances for $800 for use in her home. Myra pays $200 down and signs an installment sales contract with Howard Appliances to finance the $600 balance. The installment sales contract provides that Myra will pay $50 per month until the $600 balance, plus five percent interest, is paid in full. To perfect its security interest in the $600, Howard must:
file the installment sales contract with the county clerk.
do nothing.
file the installment sales contract with the secretary of state.
file a financing statement with the appropriate government office.
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