Kelly borrows $12,000 from Terry Oswald to pay for her mother's surgery.The debt-repayment period is 15 months but Kelly manages to repay it in 11 months.Which of the following must be filed by Oswald after receiving the final installment of his money?

Question

Quizplus · Accepted Answer

A termination statement must be filed by Oswald after receiving the final installment of his money, as it will officially terminate the security interest he held in the collateral (the $12,000 debt) and release Kelly from any further obligations towards him. A financing statement is filed at the beginning of the debt-repayment period to establish the security interest, while a statement of collateral claim is used when there is a dispute or confusion over the ownership or value of the collateral. A continuation statement is used to extend the validity of a financing statement, but it is not applicable in this scenario since the debt has already been repaid in full.

Kelly Borrows $12,000 from Terry Oswald to Pay for Her