Secure Bank lends funds to Trucking Corporation to add a maintenance garage to Trucking's property. Payment of the loan is guaranteed by the building. The law covering this transaction is provided by

Question

Quizplus · Accepted Answer

The transaction involves a loan and a security interest in real property, which falls under the scope of the Uniform Commercial Code (UCC). The UCC governs transactions involving personal property, as well as fixtures and real property that are used as collateral for loans or other forms of credit. Local building ordinances and state shipping regulations do not typically provide legal guidance for this type of transaction, and federal banking rules may apply to the lender, but not necessarily to the underlying loan agreement. Therefore, the correct answer is option D, the Uniform Commercial Code.

Secure Bank Lends Funds to Trucking Corporation to Add a Maintenance