which of the following is true regarding a security interest in consumer goods? course hero

by Carlo Armstrong Jr. 4 min read

When a creditor sells a consumer good to a debtor?

When a creditor sells a consumer good to a debtor on a credit basis, the security interest perfects automatically. Which of the following is true under the UCC regarding a security interest in collateral that has been perfected in one state when the collateral is moved to another state?

What happens to the security interest when a good is purchased?

As long as the buyer is not aware of the security interest, purchases the good for his or her personal use, and purchases the good before the secured party files a financing statement, the new buyer obtains the good free of the security interest.

What is a purchase-money security interest?

The purchase-money security interest has priority over any other secured perfected interests as long as the purchase-money security interest is perfected within 20 days of the debtor's possession of the collateral.