This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Gateway sold a big-screen TV and entertainment center to Iris for 2000 on credit. Iris signed a ... (Read 62 times)

kwoodring

  • Hero Member
  • *****
  • Posts: 560
on: Jun 24, 2018
Gateway sold a big-screen TV and entertainment center to Iris for 2000 on credit. Iris signed a promissory note and gave Gateway a security interest in the TV and entertainment center. Gateway filed a financing statement in the appropriate public office. When Iris defaulted on her monthly payments owing a balance of 1780, Gateway's attorney made arrangements to have the TV and entertainment center repossessed. The attorney then placed classified ads in the local newspaper to sell the goods. The attorney's fees are 300, the repo company charged 150, and the advertising costs are 50. (
 A) Is Iris able to redeem the property? (B) If Iris does not redeem and the TV and entertainment center are sold for 1750, how will the money be disbursed?

Question 2

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?
 A) Yes, it meets the UCC requirements for contents and filing.
 B) No, if the debtor is an individual, the secured party must file in the state of the debtor's principal residence, which in this case would be Illinois.
 C) No, the secured party needed to file a financing statement in both Indiana and Illinois.
 D) No, a security interest cannot be attached to a copyright.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zenzy

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 24, 2018
Answer to Question 1


(A) Yes, Iris may redeem the property. Up to the time that the secured party disposes of the collateral, the debtor has the right to redeem it. This means that the debtor can regain possession of the collateral if she pays the full balance of the note.
(B) If Iris does not redeem and the TV and entertainment center sell for 1750, the sale proceeds will be distributed as follows:


Sale Proceeds

1750.00

- Attorney's Fees

-300.00

- Repo Co.

-150.00

- Advertising

-50.00


Balance

1250.00

to be applied to the loan balance of 1780.



This leaves a deficiency balance of 530. Gateway can sue Iris to obtain a general unsecured judgment for this deficiency balance.



Answer to Question 2

B


kwoodring

  • Member
  • Posts: 560
Reply 2 on: Jun 24, 2018
Great answer, keep it coming :)

ebonylittles

  • Member
  • Posts: 318
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Do you know what that large object in the center of the photo is? In the 1920s, 30s, and 40s, ... Do you know what that large object in the center of the photo is? In the 1920s, 30s, and 40s, ...
A horizontally opposed engine design helps to lower the vehicle’s center of gravity. A horizontally opposed engine design helps to lower the vehicle’s center of gravity.
Mastering Biology Question Mastering Biology Question
screen-shot-2017-02-01-at-8-34-14-pm.png screen-shot-2017-02-01-at-8-34-14-pm.png
screen-shot-2017-02-01-at-8-28-01-pm.png screen-shot-2017-02-01-at-8-28-01-pm.png
Mastering Biology Question Mastering Biology Question
Video: What is Reverse Osmosis?

For a complete list of videos, visit our video library