CARS Asset Recovery Specialist Asset Investigation & Identification 3

Question 1

Which type of lien takes priority over a previously perfected security interest when a vehicle is repaired and the shop is unpaid?

Accepted Answer

An artisan's (mechanic's) lien for labor and materials

Answer

In most states, a mechanic's or artisan's lien for services rendered on personal property has statutory priority over pre-existing security interests while the shop retains possession.

Question 2

When investigating real property assets tied to a debtor, which public record provides the MOST direct evidence of ownership?

Accepted Answer

The county recorder's deed of trust or warranty deed

Answer

A recorded deed in the county recorder's or register of deeds' office is the definitive public record establishing real property ownership.

Question 3

An asset investigation uncovers that a debtor owns a boat registered in a neighboring state. Which database should be consulted to confirm registration?

Accepted Answer

The U.S. Coast Guard Documentation Center or the neighboring state's DMV equivalent

Answer

Recreational vessels are registered either with the U.S. Coast Guard (for documented vessels) or the state agency equivalent of the DMV in the state of principal use.

Question 4

A 'collateral audit' performed during an asset investigation primarily serves to:

Accepted Answer

Confirm that the collateral physically exists, is in the expected condition, and matches loan records

Answer

A collateral audit verifies that the pledged asset exists, is properly identified (VIN, serial number), and matches the description in the loan agreement.

Question 5

What is a 'title washing' scheme in vehicle investigation?

Accepted Answer

Moving a branded (salvage/flood) title through multiple states to obtain a clean title

Answer

Title washing involves re-titling a branded vehicle in multiple states to exploit gaps in inter-state data sharing and obtain a clean title, concealing prior damage history.

(CARS) Certified Asset Recovery Specialist Practice Test

(CARS) Certified Asset Recovery Specialist Practice Test

CARS Asset Recovery Specialist Asset Investigation & Identification 3