Milt borrowed $200 from Femi. He agreed verbally that Femi could take possession of his books and keep them until he had repaid the loan in full. The next day, after Femi had the books in her possession, Orin offered to purchase the books from Milt for $150. Milt accepterd the offer and took Orin's money to retrieve the books from Femi, Femi, however, refused to give up possession of the books until she was paid in full. Both Milt and Orin now claim that Femi has no rights to the books because she does not have a signed security agreement and has not filed a financing statement. In this case, which of the following statements is true according to the Uniform Commercial Code?

A. Femi's security interest in the collection will protected only if she files a financing statement.
B. Femi's security interest is not attached in the absence of a written security agreement
C. Femi's possession of the collection satisfies the perfection requirement because it puts a
D. Femi's failure to file a public notice rejects the perfection of the agreement even though even though she maintained possession of the books. third party like Orin on notice of Femi's interest in the property. she is in possession of the collateral.

Femi's possession of the collection satisfies the perfection requirement because it puts the third party on the notice of Femi's interest in the property

Explanation:

Uniform commercial code are laws that govern business transaction in the USA

As at the time of forming the agreement , document of title ,financial statement , written security agreement  were not party of the agreement.

Moreover , the agreement was that Femi will be in possession of the book until full but not partial payment is made

Bringing up such is a breach of contract agreement by Milt.

Moreover , this has also made Orin to know that Femi has an interest in the item being offered to her as this has not been disclosed to her by Milt. Therefore Orin can be cautious of the transaction.

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