Which of the following is true about possession of collateral by the secured party as public notice?
A)Change of possession is a convenient way for perfecting most security interests in consumer goods.
B)Possession of collateral by the creditor is rarely executed to perfect a security interest in chattel paper and negotiable documents of title.
C)Possession is a possible way of perfecting a security interest in inventory which is achieved through a field warehousing arrangement.
D)Possession by the creditor is a practicable way of perfecting a security interest in equipment or farm products.

Question

Quizplus · Accepted Answer

Change of possession is not a common or convenient way for perfecting most security interests in consumer goods.Possession of collateral by the creditor is often the best way to perfect a security interest in chattel paper and negotiable documents of title.Possession is also a possible way of perfecting a security interest in inventory.This is sometimes achieved through a field warehousing arrangement.Possession by the creditor is usually not a practicable way of perfecting a security interest in equipment or farm products.

Which of the Following Is True About Possession of Collateral