Hank's tractor is collateral for a loan and Hank moves to the next county. In most states, the security instrument must be re-filed in the proper county or it will render the security interest ineffective.

Question

Quizplus · Accepted Answer

The security interest in the tractor remains effective even if Hank moves to a different county; re-filing in the new county is not typically required to maintain the effectiveness of the security interest. The initial filing provides notice of the security interest and is generally effective regardless of relocation within the state.

Hank's Tractor Is Collateral for a Loan and Hank Moves