NYLE NY Commercial Transactions & UCC 2

Question 1

Under UCC Article 9 as adopted in New York, a security interest in most business personal property is perfected by filing a UCC-1 financing statement where?

Accepted Answer

With the New York Secretary of State's UCC Division

Answer

Under NY UCC Article 9, financing statements for most personal property collateral are filed centrally with the New York Department of State, Division of Corporations.

Question 2

Under New York's UCC Article 9, a purchase money security interest (PMSI) in consumer goods is perfected automatically without what?

Accepted Answer

Filing a financing statement

Answer

Under UCC 9-309, a PMSI in consumer goods is automatically perfected upon attachment without the need to file a financing statement.

Question 3

Under UCC 9-322, when two secured creditors both have perfected security interests in the same collateral, priority generally goes to:

Accepted Answer

The creditor who first filed or perfected

Answer

Under the first-to-file-or-perfect rule of UCC 9-322, priority among competing perfected security interests goes to the party who first filed a financing statement or first perfected.

Question 4

Under UCC Article 9, a UCC-1 financing statement lapses after how many years if a continuation statement is not timely filed?

Accepted Answer

5 years

Answer

A UCC-1 financing statement is effective for five years from the date of filing; a continuation statement must be filed within six months before lapse to maintain perfection.

Question 5

Under UCC Article 9, a debtor's right to redeem collateral from a secured party must be exercised before which event?

Accepted Answer

The secured party disposes of or enters into a contract to dispose of the collateral, or accepts the collateral in full satisfaction

Answer

Under UCC 9-623, a debtor may redeem collateral by tendering full payment of the secured obligation before the secured party has disposed of or contracted to dispose of the collateral, or accepted it in satisfaction.

NYLE - New York Law Exam Practice Test

NYLE - New York Law Exam Practice Test

NYLE NY Commercial Transactions & UCC 2