Bill lends Harvey $500 and the loan is secured by Harvey's furniture.If Bill files a financing statement on January 30, 2010, how long will he keep his security interest?

Question

Quizplus · Accepted Answer

A financing statement is generally effective for five years from the date of filing. If a continuation statement is filed within six months before the expiration of the five-year period, the effectiveness of the financing statement is extended for another five years. Therefore, if a continuation statement is filed, Bill's security interest will last until January 30, 2020.

Bill Lends Harvey $500 and the Loan Is Secured by Harvey's