Corporate Bank wants to perfect its security interest in inventory owned by Outdoor Outfitters, Inc. Most likely, a financing statement should be filed with
A) the bank manager.
B) the county clerk.
C) the U.S. Department of the Interior.
D) the secretary of state.

Question

Quizplus · Accepted Answer

The best choice is to file a financing statement with the secretary of state. This is because the secretary of state is responsible for maintaining public records of business entities and their creditors. Filing a financing statement with the secretary of state is a common way to perfect a security interest in inventory owned by a company. Filing with the other options, such as the bank manager or the U.S. Department of the Interior, would not be effective in perfecting the security interest. Filing with the county clerk may provide some level of notice, but it is not as comprehensive or reliable as filing with the secretary of state.

Corporate Bank Wants to Perfect Its Security Interest in Inventory