County Bank wants to perfect its security interest in collateral owned by Delta Sales Company. Most likely, a financing statement should be filed with
A) the local chamber of commerce.
B) the county clerk.
C) the federal loan officer.
D) the secretary of state's office.

Question

Quizplus · Accepted Answer

The best option for perfecting a security interest in collateral is to file a financing statement with the secretary of state's office. This is because the secretary of state's office maintains public records of business entities and their assets, including any security interests or liens attached to them. Filing a financing statement with the secretary of state's office establishes priority among creditors and provides notice to potential buyers of the collateral. The other options, such as filing with the local chamber of commerce or the county clerk, may not provide sufficient notice to be effective in perfecting the security interest. The federal loan officer is also not relevant to this process.

County Bank Wants to Perfect Its Security Interest in Collateral