Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Elaine needs $1,500 to buy textbooks and other school supplies. Kramer agrees to loan Elaine $1,500, accepting as collateral Elaine’s car. They put their agreement in writing and sign it. Elaine keeps possession of the car. What are the requirements for Kramer to have an enforceable security interest in the car? What must Kramer do to let other creditors know of his security interest in the car?

Sagot :

anthougo

Answer:

1. For Kramer to have an enforceable security interest in the car, the following requirements must be met:

a. Elaine must possess the property right over the car.  

b. Kramer must give value for the security interest.  

c. Elaine must have authenticated the security agreement by describing it, or Kramer must be in possession of the collateral.

2. Kramer needs to perfect his security interest in the car by registering it with the appropriate statutory body.

Explanation:

Under UCC Article 9, four steps must be taken by Kramer to perfect the security interest in the collateral car.  They include:

a. Creating and filing a financing statement with the statutory body

b. Establishing actual possession of the car

c. Establishing control over the car by not allowing Elaine keep its possession.

d. Attaching a purchase financial security interest on the car.

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.