medium · Asset-Backed Securities
An auto ABS transaction leaves the seller named as lienholder on vehicle titles, assigns the receivables and related vehicle security interests to the trust, and files UCC financing statements for the receivables.
Which statement is most accurate?
- The seller's name on each title automatically perfects the trust's vehicle liens in every state.
- The trustee must be retitled as owner of every vehicle or the receivables transfer is legally void.
- Avoiding mass retitling is practical, but perfection depends on the assignment, UCC rules, and state title law.
- Possession of the electronic loan schedule alone perfects every vehicle lien for the trust.
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