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4 votes
What searches should a lawyer conduct during PPSA registration for a bank?

1) Search for existing security interests
2) Search for prior registrations
3) Search for competing claims
4) All of the above

1 Answer

2 votes

Final answer:

A lawyer should perform all of the mentioned searches during PPSA registration for a bank to ensure no existing or competing claims conflict with the new security interest.

Step-by-step explanation:

The question is asking what type of searches a lawyer should conduct during PPSA (Personal Property Securities Act) registration for a bank. The answer is 4) All of the above. This entails a comprehensive review of records to ensure that the new security interest being registered by the bank does not conflict with any existing security interests on the collateral.

A search for existing security interests helps identify prior claims that could affect the bank's position. A search for prior registrations provides insight into whether the collateral has been used for other secured transactions. Lastly, a search for competing claims could reveal other parties that may have a legal interest in the collateral. Successful PPSA registration ensures that the bank has a publicly acknowledged security interest, which can be critical for the recovery process if a borrower defaults.

answered
User Yvonna
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