Sam Furber purchased a home in 2019 for $636,000, giving a mortgage to CNN Mortgage Co. for $500,000. After moving in, Sam had a built-in dining cabinet and bookshelves installed. He financed the shelving with Libraries, Inc., a total of $22,000. Libraries filed a financing statement on the security interest in the shelving on March 18, 2019. The shelving and cabinet are attached to the walls of the home. In 2020, Sam had a home theater installed by Living Entertainment. Living Entertainment financed the installation, a total of $41,000, through a security interest and filed a financing statement on September 9, 2020. The home theater includes an in-wall screen as well as projection equipment suspended from the ceiling and 12 recliner chairs. Sam lost his job and has defaulted on his mortgage payment. CNN is foreclosing on Sam's home.
-What would happen if Living Entertainment filed its financing statement centrally?
A) It would be invalid
B) Living Entertainment would be perfected and secured on the chairs and the equipment
C) Living Entertainment would have filed correctly and would be protected for the full amount financed
D) There is no filing required because recliner chairs are not real property
Correct Answer:
Verified
Q86: A refrigerator purchased by a homeowner for
Q87: Charles E. Williams paid for the purchase
Q88: Wells Fargo is foreclosing on its June
Q89: Wells Fargo is foreclosing on its June
Q90: Sam Furber purchased a home in 2019
Q92: Sam Furber purchased a home in 2019
Q93: Miriam Jensen purchased a fixer-upper home for
Q94: Miriam Jensen purchased a fixer-upper home for
Q95: Miriam Jensen purchased a fixer-upper home for
Q96: Miriam Jensen purchased a fixer-upper home for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents