In a financing statement to give notice of a loan to Lumber Yard Inc., Metro Finance Company wants to include a description of the collateral. A sufficient description would be
A)"all the debtor's personal property."
B)"all the debtor's assets."
C)"all the debtor's present and future inventory."
D)any of the choices.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a description of collateral in a financing statement is considered sufficient if it reasonably identifies what is described. This can include a description by category, type, quantity, computational or allocational formula, or any other method, if it objectively determines the collateral. Therefore, descriptions like "all the debtor's personal property," "all the debtor's assets," or "all the debtor's present and future inventory" are all sufficiently specific to reasonably identify the collateral covered by the financing statement.

In a Financing Statement to Give Notice of a Loan