The payment of Hu's debt to Intrastate Bank is guaranteed by Hu's personal property. To give notice of its interest in Hu's property to other creditors, the bank is most likely to
A) attach a bright label to Hu's property.
B) e-mail other potential creditors.
C) file a financing statement with the appropriate authority.
D) publish a collection notice in local newspapers.

Question

The payment of Hu's debt to Intrastate Bank is guaranteed by Hu's personal property. To give notice of its interest in Hu's property to other creditors, the bank is most likely to​
A) ​attach a bright label to Hu's property.
B) ​e-mail other potential creditors.
C) ​file a financing statement with the appropriate authority.
D) ​publish a collection notice in local newspapers.

Quizplus · Accepted Answer

The bank is most likely to file a financing statement with the appropriate authority, such as the Secretary of State's office, to provide notice of its interest in Hu's personal property. This is a common practice in secured transactions and provides protection for the bank's collateral rights. Attaching a bright label or publishing a collection notice in local newspapers would not be an effective way to provide this notice, and e-mailing other potential creditors may not be a reliable or legally recognized communication method.

The Payment of Hu's Debt to Intrastate Bank Is Guaranteed