When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title, the security interest is perfected:
A) by the certificate notation, when a non-inventory motor vehicle is involved.
B) by filing under the UCC, regardless of how the vehicle is classified.
C) by filing under the UCC, when the motor vehicle is inventory.
D) either by the certificate notation or by a UCC filing, depending on how the state statute defines the term motor vehicle.

Question

Quizplus · Accepted Answer

When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title, the security interest is perfected by the certificate notation, especially when a non-inventory motor vehicle is involved. This is because the notation on the title serves as public notice of the security interest.

When a State Statute Requires a Security Interest in a Motor