Kathy is the secured party in a transaction with Julie, who is the debtor. The collateral is a 2007 Chevrolet F150 pick-up truck. Kathy files a financing statement in which she describes the collateral as "a vehicle." To perfect Kathy's interest this is
A) not sufficient.
B) sufficient.
C) sufficient if the financing statement also includes Julie's signature.
D) sufficient if the financing statement also includes the location of the collateral.

Question

Quizplus · Accepted Answer

A financing statement must reasonably identify the collateral. Describing it merely as "a vehicle" is too vague and not sufficient to perfect the security interest.

Kathy Is the Secured Party in a Transaction with Julie