Capital Projects, Inc., files a financing statement to provide notice of its security interest in the property of Data Network Corporation. The initial effective term of a financing statement is a period of
A) five days.
B) five months.
C) five weeks.
D) five years.

Question

Capital Projects, Inc., files a financing statement to provide notice of its security interest in the property of Data Network Corporation. The initial effective term of a financing statement is a period of​
A) ​five days.
B) ​five months.
C) ​five weeks.
D) ​five years.

Quizplus · Accepted Answer

The initial effective term of a financing statement is five years, as per the Uniform Commercial Code (UCC).