Question
Debtor's name is Monique La Mer. In a financing statement, Creditor A lists her name as Monica Lamere and accurately indicates the collateral and Creditor
Debtor's name is Monique La Mer. In a financing statement, Creditor A lists her name as Monica Lamere and accurately indicates the collateral and Creditor A's information. Monique offers the same collateral as security to Creditor B that is the subject of Creditor A's security interest. Creditor B searches the public records for a financing statement and does not find a security interest held by any other creditor in the same collateral for Monique. Creditor B then extends a loan to Monique and files a financing statement. If Monique defaults with respect to both creditors, which statement is true? A. The mistake in the debtor's name does not impact Creditor A's perfection of its security interest. B. The financing statement is filed under the creditor's name, so it is irrelevant that the debtor's name is misspelled. C. Since the debtor's name on the financing statement is wrong, the financing statement failed to provide adequate notice to Creditor B, so it will not succeed in perfecting Creditor A's security interest.
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