Which of the following is true of financing statements?
A)They cannot be electronically filed.
B)They are effective for one year from the date of filing.
C)Expired financing statements cannot be extended.
D)They are available for review by the public.

Question

Quizplus · Accepted Answer

Financing statements are available for review by the public once they are filed with the appropriate state agency. This helps interested parties to determine whether there are existing liens or security interests on a particular asset. Option A is incorrect, as many states allow for electronic filing of financing statements. Option B is incorrect, as financing statements usually remain effective for five to 10 years from the filing date depending on the state. Option C is incorrect, as financing statements can be extended through proper renewal procedures.

Which of the Following Is True of Financing Statements