Kingston Bank has a security interest in the equipment of Apex Manufacturing to secure a $10 000 loan that the Bank made to Apex.Apex has defaulted on one of its monthly loan payments in the amount of $1000.The security agreement provides that the whole amount of the loan is payable on demand.The bank can seize the equipment without notice to Apex.

Question

Quizplus · Accepted Answer

The bank generally must provide notice to Apex before seizing the equipment, as per the requirements of the Uniform Commercial Code (UCC) Article 9, which governs secured transactions, including the enforcement of security interests.

Kingston Bank Has a Security Interest in the Equipment of Apex