Mod 29 Wrong Answers Flashcards
1
Q
The best way to perfect s security interest in a negotiable instrument is to take possession of the instrument. This is true because…
A
Negotiable instruments are easily negotiated to other holders who
can become holders in due course
2
Q
Perfecting by attachment, requires…
A
Money security interest in consumer goods
3
Q
Upon the debtor’s default, the secured party may…
A
Take possession of the collateral and sell it
4
Q
A good faith purchaser for value buys the collateral…
A
Free of any liens or security interests
5
Q
In general, the best way to perfect a security interest in a negotiable instrument is to…
A
The possession of the instrument
