Which of the following is acceptable in describing collateral in a financing statement?

Study for the Secured Transactions Bar Exam. Master secured transactions concepts with flashcards and multiple-choice questions, each with hints and explanations. Get exam-ready!

Describing collateral in a financing statement can indeed utilize super-generic descriptions such as "all property." This option is valid because, under the Uniform Commercial Code (UCC), a security interest can attach to a broad range of collateral. As long as the description provides a reasonable indication to third parties of what is covered, the use of a broad phrase like "all property" can effectively establish the scope of the security interest. This flexibility is particularly useful for lenders who may want to secure a range of assets under one agreement.

In contrast, the other options emphasize requirements that are either too strict or impractical. Detailed and specific descriptions can be beneficial but are not a necessity in all cases. Including estimated value is not required in financing statements under the UCC, nor is it a standard practice to need an exact match in language with the sales agreement. This illustrates that while specificity can aid clarity, the law permits a broader level of description to accommodate various commercial practices.

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