Country Bank,located in Indiana,loaned Chmelik $5,000 and obtained a security interest in a copyright Chmelik owns.Chmelik lives in Illinois,but works in Indiana.In order to perfect its interest,Country Bank files a financing statement in Indiana.The financing statement provides Chmelik's correct name,his business address,and a reasonable description of the copyright used as collateral.Is the financing statement sufficient?

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), for the purpose of perfecting a security interest through a financing statement, when the debtor is an individual, the filing must occur in the state of the debtor's principal residence. In this scenario, since Chmelik lives in Illinois, the correct jurisdiction for filing the financing statement to perfect the security interest in the copyright would be Illinois, not Indiana where the loan was made or where Chmelik works.

Country Bank,located in Indiana,loaned Chmelik $5,000 and Obtained a Security