Page 3 (14) The payment of Paul's debt to Ryan is guaranteed by Paul's 2002 Honda Civic. Ryan filed the financing statement on July 1, 2014. If Ryan does nothing else, the financing statement will be effective until (a) July 1, 2015 (6) July 1, 2016 () July 1, 2019 (d) July 1, 2024 (15) Valley Furniture Store sells household consumer goods on credit for which Valley files a financing statement to perfect a security interest in the goods. With the filing of subsequent continuation statements, the effectiveness of the statement can be continued (a) indefinitely b) for no longer than 5 years () for no more than six months. (d) up to five years and six months (16) A financing statement is an agreement that creates or provides for a security interest (a) True (b) False (17) Attachment gives the debtor a defense against a creditor's attempt to enforce a security interest in the debtor's collateral () True (b) False. (18) A security interest is enforceable only if the collateral is in the creditor's possession (a) True (6) False (19) Perfection is usually accomplished without filing a financing statement, (a) True (6) False (20) Either the security agreement or the financing staternent but not both must describe the collateral in wtuch the secured party has a security interest - (a) True (b) False (21) A buyer in the ordinary course of business takes the goods free from any security interest created by the seller unless the secunty interest is perfected (a) True (b) False Page 4 (22) Janet is the secured party in a secured transaction with Michelle. Janet could also be referred to as the (a) Debtor (b) Secured creditor (e) Filling Officer (d) Collateral (23) The payment of Fritz's debt to Giant is guaranteed by Fritz's personal property. Giarunu is (a) A debtor 6) A secured party (c) A secured transaction (d) A security interest (24) Rural Financial Corporation is a secured party with a security interest in property owned by Strawberry Fields, Inc. Perfection of this security interest may not protect Rural Financial against the claim of (a) A bank b) A buyer in the ordinary course of business. ) A subsequent lien creditor (d) A trustee in bankruptcy. 25) Dredging, Inc. borrows $50,000 from Equity Financing Corporation in a secured transaction using Dredging's equipment as collateral Dredging then borrows $70,000 from First Choice Lenders, Inc., tsing the same equipment as collateral. Neither Equity Financing nor First Choice perfects its security interest Dredging default on the loans. The party with priority is (a) Equity Financing because its interest was the first to attach. (6) Fint Choice, because Dredging owes it more money. (e) First Choice, because its interest was the second to attach. (d) Equity Financing besause Dredging owes it less money 26) Super Discount Store sells goods to consumers and businesses in several states in the Midwest. Most of the goods are sold on credit Super Discount often takes a security interest with the goods as collateral. The state in which a financing statement should be filed depends on the location of (a) The Debtor (b) The Collateral The store in wtuch the goods were sold (d) The place from wuch Super Discount manages its operations 27) Lenders Bank files a financing statement regarding a transaction with Metro Construction Company. To be Valid, the financing statement must contain all of the following except (a) A description of the collateral (b) A staternent of the purpose of the transaction (c) Lender's name (d) Metro's name 28) Proceeds from the disposition of collateral after default tre distributed in a certain order with any surplus generally going to the debtor (a) True (6) False 29) For a creditor to have an enforceable security interest, the debtor must have rights in the collateral (9) True (b) False