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Equity Bank Lends Funds to Fabrication Company to Add a Storage

Question 40

Multiple Choice

Equity Bank lends funds to Fabrication Company to add a storage unit to Fabrication's factory. Payment of the loan is guaranteed by Fabrication's supply of inventory. The law covering this transaction comes from


A) local building ordinances.
B) state manufacturing regulations.
C) federal banking rules.
D) the Uniform Commercial Code.

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