Stan bought a motorcycle for $4,000 on credit extended by the seller Cooper Motors.Stan signed a security agreement with the seller for the credit he obtained.Cooper Motors didn't file a financing statement for the credit offered.In this case,Cooper Motors automatically obtained the creditor's security interest through ________.

Question

Quizplus · Accepted Answer

Perfection by attachment is the automatic creation of a creditor's security interest in the collateral when a security agreement is signed. However, since no financing statement was filed, the security interest is not perfected by filing. Possession of collateral and claim do not apply to this scenario.

Stan Bought a Motorcycle for $4,000 on Credit Extended by the Seller