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Arthur Borrowed $2,000 from Doug,and Gave Doug His Car as Security

Question 89

Multiple Choice

Arthur borrowed $2,000 from Doug,and gave Doug his car as security for the loan.Doug does not file a financing statement.Carrie obtains a judgment against Arthur and wants the car.Can she get it?


A) Yes; Doug failed to file a financing statement.
B) Yes; a judgment will take precedence over the agreement between Doug and Arthur.
C) No,because Doug and Arthur made the agreement before the judgment was obtained.
D) No,because Doug has perfected his security interest by taking possession of the vehicle.

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