Question

Please give me a detailed answer. Thanks.

Answer 1

In this case the note has been duly recorded. The First National Bank of Lacon has completed the process of ‘putting the world on notice’ with regards to its security interest in the note and hence has made its rights fully enforceable.

UCC (Uniform Commercial Code) says that there are four methods of perfecting security interests. They are: (i) filing financial statements (ii) by possession (iii) by control and (iv) by other methods under state and federal law.

A bank has to function under a set of rules and guidelines and so in all probability The First National Bank of Lacon has filed the promissory note documents with the appropriate office. Also the promissiory note bears the signature of Elmer and Pam.

Thus we can conclude that the bank has a perfected security interest in the property.