Florida Bar - Secured Transactions Questions With Complete Solutions

How to approach on the exam? correct answer: o (1) Call of the question o (2) Identify and classify the property at issue o (3) Determine which parties have or claim an interest in the collateral o (4) For each security interest, assess: § Attachment - has SI attached? To which collateral? When? § Perfection - has secured party perfected SI? When? How? o (5) Find and apply appropriate rule to the facts to resolve the dispute Vocabulary correct answer: o Security Interest - an interest in PP or fixtures that secures payment or performance of an obligation o Security Agreement - consensual agreement that provides for the SI § Substance controls; not the form o Parties § Secured Party - creditor who obtains SI § Obligor - person who must pay/perform obligation that collateral secures § Debtor - person who has the interest (other than SI) in collateral Collateral o Goods - anything that is movable at the time the SI attaches (debtor's principal use determines the class) correct answer: § Consumer Goods - acquired for personal, family, household purposes § Farm Products - crops, livestock, supplies used in farming (does not include farm equipment) § Inventory - goods held for sale or lease (includes raw materials, WIP, goods consumed in business) § Equipment - catch-all class