The payment of Hu's debt to Ian is guaranteed by Hu's personal prop?erty.To give public notice of his interest in Hu's property,Ian is most likely to
A)attach a bright label to Hu's property.
B)e-mail other potential creditors.
C)file a financing statement with the appropriate authority.
D)publish a collection notice in local newspapers.

Question

Quizplus · Accepted Answer

The most appropriate action for Ian to take is to file a financing statement with the appropriate authority. This serves as public notice that Ian has a security interest in Hu's property, which guarantees the payment of Hu's debt to him. This action is also required by law for the creditor to establish priority over other potential creditors in case of default or bankruptcy. Attaching a bright label or publishing a collection notice in local newspapers may not be sufficient to serve as public notice, while e-mailing other potential creditors is unlikely to establish priority or legal validity.

The Payment of Hu's Debt to Ian Is Guaranteed by Hu's