Fiona borrows $1,000 from Garden State Bank, using her recreational vehicle (RV), which she purchased at Hugo's RV Sales & Service, as collateral. To perfect its security interest, the bank must file its financing statement with

Question

Fiona borrows $1,000 from Garden State Bank, using her recreational vehicle (RV), which she purchased at Hugo's RV Sales & Service, as collateral. To perfect its security interest, the bank must file its financing statement with​

Quizplus · Accepted Answer

When a security interest is taken in personal property, such as an RV, the lender must perfect their security interest by filing a financing statement with the secretary of state. This puts other potential creditors on notice of the lender's claim to the collateral in the event of default. Filing with the county clerk or city treasurer is not sufficient for perfecting a security interest in personal property. Filing with the seller, Hugo's RV, is also not necessary as they are not involved in the lender/borrower relationship.

Fiona Borrows $1,000 from Garden State Bank, Using Her Recreational