O'Cieran
& Middlebrook, Inc

TEST YOUR UCC I.Q.

For those of you already acquainted with the UCC and those to whom the UCC is brand new, O'Cieran & Middlebrook, Inc. invites you to test your UCC I.Q. with the following True/False test.   Answer each question and "Submit".  The correct answers will arrive by email from O'Cieran & Middlebrook, Inc.
Name
Email Address
True False 1.  A security interest is not automatically perfected until the secured party has filed a financing statement or taken possession of the goods
True False 2.  A financing statement must show the debtor's trade name.
True False 3.  A security agreement can not serve as a financing statement.
True False 4.  When goods are in the possession of a bailee under a bailment created by the debtor, the secured party must obtain actual physical control over the goods if the secured party wishes to perfect by possession.
True False 5.  The UCC directs the appropriate filing official to accept a continuation statement at any time.
True False 6.  The secured party with a perfected security interest in inventory can have a perfected non-possessory security interest in cash proceeds arising from the sale of the inventory only if the security agreement contains an after acquired clause.
True False 7.  Whenever the debtor's true name is changed, a previously filed financing statement must be amended.
True False 8.  A financing statement may be effective even though it contains minor errors in the debtor's name.
True False 9.  Both the debtor and the secured party must sign a financing statement which amends a previously filed financing statement.
True False 10.  A financing statement filed in the wrong place may nevertheless be effective if the filing is made in good faith.
True False 11.  The debtor must sign a continuation statement.
True False 12.  A security agreement is not effective between the debtor and the creditor until it is perfected.
True False 13.  The terms "chattel paper" and "instrument" are interchangeable and describe the same type of collateral.
True False 14.  The validity of all third-party claims to the collateral will be determined by various provisions of Article 9.
True False 15.  Chattel paper may be either original collateral or the proceeds of collateral.
True False 16.  In all purchase oney security transactions, the prority of the secured party in the original collateral extends without restriction to all proceeds arising from the sale of the collateral.
True False 17.  Sometimes, even perfection by filing will not protect the secured party against the claim of a third party.
True False 18.  While the perfection rules of Article 9 distinguish between purchase money and non-purchase money security interests, the priority rules do not confer any special status upon the purchase money secured creditor.
True False 19.  An unperfected Article 9 security interest may be avoided pursuant to provisions in the Bankruptcy code. (BC 544(b).
True False 20.  A trustee can avoid all statutory liens.
True False 21.  The bankruptcy trustee can avoid an Article 9 security interest as a fraudulent conveyance if an individual creditor has the same right under applicable non-bankruptcy law.
True False 22.  Debtor is involved in Chapter 11 proceedings.  Secured Creditor can obtain relief from stay simply by showing that Debtor has no equity in the collateral.
True False 23.  Modification of secured party rights is possible in a Chapter 11 or Chapter 13 proceeding even if the secured interest can not be avoided.
True False 24.  The secured party may exercise their right of self-help repossession only if this may be done "without breach of the peace".
True False 25.  Any judicial lien obtained by the secured party in a suit on a debt is treated in a manner identical to the lien created by the security interest and related back to the time when the security interest was perfected.
True False 26.  It does not matter whether a notice of resale is oral or written.
True False 27.  Funds derived from the sale of collateral by the secured party are used, first of all, to pay the debt owed to the secured party.
True False 28.  The Uniform Consumer Credit Code prohibits a credit seller from recovering a deficiency when the initial sale price of the goods is $1750 or less