- This topic has 3 replies, 2 voices, and was last updated 9 years, 5 months ago by .
-
Topic
-
Jeff–Is there something wrong with this question? I don’t know the question number because I pressed next before I realized the explanation contradicted the answer.
Under the Secured Transactions Article of the U.C.C., which of the following security agreements does not need to be in writing to be enforceable?
A. A security agreement collateralizing a debt of less than $500
B. A security agreement where the collateral is highly perishable or subject to wide price fluctuations
C. A security agreement where the collateral is in the possession of the secured party
D. A security agreement involving a purchase money security interest
The answer is C. The explanation is When the secured party can take possession of the collateral as part of the security agreement, the agreement is enforceable without writing.
A security agreement collateralizing a debt under $500, where the collateral is in the possession of the secured party, or involving a purchase money security interest (PMSI) must be in writing.
CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!
- You must be logged in to reply to this topic.