Question

What kind of legal notice do financing statements provide?

	a.	constructive
	b.	horizontal
	c.	actual
	d.	vertical

Which of the following is NOT a method of perfecting a security interest?

	a.	taking possession of collateral
	b.	making future advances
	c.	filing a financing statement
	d.	take a purchase money security interest in consumer goods

Which of the following is NOT a requirement for a security agreement?

	a.	must be signed by the creditor
	b.	must include creditor's rights upon default
	c.	must include debtor's promise to repay
	d.	must contain a description of the collateral

Answer 1

Answer 1:

• Option a : constructive

Explanation:

• Constructive notice is legal notice which basically communicate info which a person or organisation should know, as any reasonable person or organisation should have known. Hence a Financial document tells the stakeholders about the performance and decisions taken by the organisation / person.

Note: Chegg mandates answering of first full question.