VA Bar Secured Transactions 2

Question 1

Under UCC Article 9, which element is NOT required for attachment of a security interest?

Accepted Answer

A financing statement has been filed with the state

Answer

Attachment requires value given, debtor rights in collateral, and an authenticated security agreement (or possession/control) — filing a financing statement is a perfection step, not an attachment requirement.

Question 2

Which type of collateral can be perfected by the secured party taking possession under UCC Article 9?

Accepted Answer

Certificated securities

Answer

Certificated securities can be perfected by the secured party taking possession (delivery) of the physical certificate under UCC Article 9.

Question 3

BigBank files a financing statement covering 'all equipment' of Debtor Corp. Six months later, Debtor Corp acquires new equipment. Is BigBank's security interest perfected as to the new equipment?

Accepted Answer

Yes, if the security agreement contains an after-acquired property clause

Answer

A financing statement covering 'all equipment' perfects as to after-acquired equipment if the security agreement itself contains an after-acquired property clause authorizing that coverage.

Question 4

A purchase money security interest (PMSI) in non-inventory goods must be perfected within how many days of delivery to the debtor to obtain superpriority over a prior perfected security interest?

Accepted Answer

20 days

Answer

Under UCC § 9-324(a), a PMSI in non-inventory goods has superpriority if perfected within 20 days after the debtor receives delivery of the collateral.

Question 5

Lender and Borrower enter into an oral security agreement granting Lender a security interest in Borrower's valuable painting. Lender immediately takes possession of the painting. Has a security interest attached?

Accepted Answer

Yes, because possession of collateral by the secured party satisfies the written agreement requirement

Answer

Under UCC § 9-203(b)(3)(B), when the secured party takes possession of the collateral, no authenticated written security agreement is required — possession itself substitutes for the writing.

(VA Bar) Virginia Bar Exam Practice Test

(VA Bar) Virginia Bar Exam Practice Test

VA Bar Secured Transactions 2