Maddie enters into a secured consumer debt transaction with Friendly Bank.When Maddie pays the loan in full,Friendly Bank is required to file a statement indicating that it no longer claims a secured interest in the collateral.This statement must be filed within one month from the date the debt is fully paid.

Question

Quizplus · Accepted Answer

This is true according to the requirements of the Uniform Commercial Code (UCC) for terminating a security interest in collateral. The bank must file a termination statement to show that they no longer have a security interest in the collateral within one month of receiving full payment from the debtor.

Maddie Enters into a Secured Consumer Debt Transaction with Friendly