LA Bar Secured Transactions 2

Question 1

Which of the following types of collateral can be perfected by either filing a financing statement OR by the secured party taking possession?

Accepted Answer

Chattel paper

Answer

Under UCC 9-312 and 9-313, a security interest in tangible chattel paper may be perfected by filing a financing statement or by the secured party taking possession of the paper.

Question 2

A bank takes possession of a negotiable promissory note as collateral for a loan without filing a financing statement. Is the bank's security interest perfected?

Accepted Answer

Yes, possession alone perfects a security interest in instruments

Answer

UCC 9-313(a) provides that a security interest in instruments may be perfected by the secured party taking possession of the instrument.

Question 3

Under UCC Article 9, an initial financing statement is effective for how long before it lapses?

Accepted Answer

5 years from the date of filing

Answer

UCC 9-515(a) provides that a filed financing statement is effective for five years after the date of filing, after which it lapses unless a continuation statement is timely filed.

Question 4

Under Article 9, a purchase money security interest (PMSI) in consumer goods is perfected:

Accepted Answer

Automatically upon attachment, without any filing requirement

Answer

UCC 9-309(1) creates an exception that perfects a PMSI in consumer goods automatically upon attachment, eliminating the need to file a financing statement.

Question 5

To extend a financing statement beyond its initial 5-year period, a continuation statement must be filed within:

Accepted Answer

The 6-month window before the financing statement lapses

Answer

UCC 9-515(d) requires a continuation statement to be filed within six months before the financing statement lapses, extending effectiveness for another five-year period.

(LA Bar) Louisiana Bar Exam Practice Test

(LA Bar) Louisiana Bar Exam Practice Test

LA Bar Secured Transactions 2