Rich Financial,Inc. ,files a financing statement regarding a transaction with Supreme Business Company.To be valid,the financing statement must contain all of the following except
A)a description of the collateral.
B)a statement of the purpose for the transaction.
C)Rich's name.
D)Standard's name.

Question

Quizplus · Accepted Answer

A financing statement is a document that is filed by a creditor to give notice of its security interest in a debtor's collateral. The financing statement must contain certain information in order to be valid, including a description of the collateral, Rich's name (as the creditor), and Standard's name (as the debtor). However, a statement of the purpose for the transaction is not required to be included in a financing statement.