USA Commercial Law (EXAMINATION)

Law Examination

Answer One

Octopus National Bank (ONB ) has employed you as its Senior Article 9 Consultant . The CEO of ONB tells you that Massive Dynamics , a corporation with its chief executive office in Texas and incorporated under the laws of Delaware , wants to borrow USD 1 ,000 ,000 to finance the development of one of its new products . Massive Dynamics has offered the following items as collateral for this loan . For each item , advise the CEO whether (1 ) Article 9 applies , and , if Article 9 applies (2 the classification of

the collateral , and (3 ) how ONB should perfect a security interest in the collateral

The Octopus National Bank (ONB ) is in communication with Massive Dynamics to provide a loan of 1 ,000 ,000 . The loan needs a collateral security which Massive Dynamics is ready to provide . The company has provided a list of 6 items to be collateral security . The job is to examine the security under Article 9

The Ucc (Uniform Commercial Code ) states various sections on the possession of the goods that are to be offered for collateral security The 9-203 section states that the goods that are to be offered for the collateral security should have the following features

The security must be in the possession of the debtor . In other cases the debtor should be bound by a contract or security agreement depiction the description of the goods . The goods here may include lands and crops

The value of the security must be given

The...