Lenders Bank files a financing statement regarding a transaction with Metro Construction Company. To be valid, the financing statement must contain all of the following except
A) a description of the collateral.
B) a statement of the purpose for the transaction.
C) Lenders' name.
D) Metro's name.

Question

Lenders Bank files a financing statement regarding a transaction with Metro Construction Company. To be valid, the financing statement must contain all of the following except​
A) ​a description of the collateral.
B) ​a statement of the purpose for the transaction.
C) ​Lenders' name.
D) ​Metro's name.

Quizplus · Accepted Answer

A statement of the purpose for the transaction is not required for a valid financing statement. However, a description of the collateral, Lender's name, and Metro's name are necessary.

Lenders Bank Files a Financing Statement Regarding a Transaction with Metro