County Bank wants to perfect its security interest in collateral owned by Direct Sales Company.Most likely,a financing statement should be filed with
A)the local chamber of commerce.
B)the county clerk.
C)the federal loan officer.
D)the secretary of state's office.

Question

Quizplus · Accepted Answer

Filing a financing statement with the secretary of state's office is the standard practice for perfecting a security interest in most states in the United States. This filing puts other creditors on notice of County Bank's interest in the collateral and protects the bank's priority claim in the event of default or bankruptcy proceedings. The local chamber of commerce, county clerk, and federal loan officer do not typically handle the filing and recording of financing statements.

County Bank Wants to Perfect Its Security Interest in Collateral