Question

Wanderlust gave a security interest in his Conestoga wagon to Iowa Bank, which perfected its security interest by filing a financing statement with the appropriate officials in Iowa. Five months later, Wanderlust hit the trail again, moving to Montana. If Iowa Bank wants to continue its perfected interest in the Conestoga wagon, it should _________.

Answer 1

Answer: File a financing statement in Montana.

Explanation: A perfected security interest, also known as a perfected lien, is when an asset is protected from claims by other people. This is done by registering the asset byan appropriate statutory figure so that it becomes enforceable legally. This asset is normally mortgaged as collateral.

In order to perfect it's interest in Conestoga wagon, Iowa Bank should improve it's interest by filing a financing statement in a suitable place of legal authority in Montana. Because Wanderlust moved to Montana 5 months later, this must be done within four months of him moving, abiding by Montana's law. Wanderlust will in effect be re-perfecting his interest by doing this.