Article 9

Front 1

9-203(1)b

Back 1

The “value”
given by the creditor

Front 2

9-203(b)(2)

Back 2

the debtor
has granted security interest in something he owns

Front 3

9-203

Back 3

Creating a valid security interest

Front 4

9-204

Back 4

allows a debtor to create security interests in afteracquired
property

Front 5

9-203(b)(3)

Back 5

9-203(b)(3)

Front 6

9-307(e)

Back 6

secretary of state is the proper office since the debtor
is an IL corporatoin

Front 7

9-506(c)

Back 7

9-506(c) indicates such an error may not be misleading if
the filing office’s standard search logic (which is likely alphabetical) would disclose the
financing statement.

Front 8

9-502

Back 8

requirements of a financing statement by including secured party's name and a description of the collateral.

Front 9

§ 9-201

Back 9

Except as otherwise provided by this Act a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors.

Front 10

§ 9-109.

Back 10

Classification of Goods: "Consumer Goods"; "Equipment"; "Farm Products"; "Inventory".

Front 11

9-203(a,b)

Back 11

a security interest is not enforceable against the debtor or third parties with respect to the collateral and does not attach unless:

(a) the collateral is in the possession of the secured party pursuant to agreement, or the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops growing or to be grown or timber to be cut, a description of the land concerned;
(b) value has been given; and

Front 12

Clark

Back 12

Went about securing AAP the wrong way.

Front 13

9-109(a)

Back 13

description sufficient -whether or not specific - if it reasonly identifies what is described.

Front 14

9-108(c)

Back 14

Supergeneric desiption is not sufficent

Front 15

9-108(e)

Back 15

Desription by type is insufficient for Commercial tort claims and Consumer transaction, consumer goods, security entitilement, securties account, commodities accounts

Front 16

Bollinger

Back 16

Look at evidence, and Intent suffices to create SA

Front 17

Weir Penn

Back 17

Court held combination of two writings was sufficent to demonstrate intent to secure the debt and to satisfy the requirement of 9-203(b)(3)

Front 18

Helms

Back 18

Claim must be existing when SI is authenticated and the SA must describe the tort claim with greater specificity than simply "all tort claims"

Front 19

9-108(e)

Back 19

A desription only by type of collateral defined in UCC is an insuffient desription of (1) a commerical tort claim.

Front 20

Shelby County

Back 20

9-322(a)(1) priority rule - early of first to file or perfect wins.

Front 21

Bryan Bros. Cattle

Back 21

BIOC -

Front 22

Moglia

Back 22

Can't give SI if you don';t have interest in the collateral. Negative pledges are contracts but can't stop a party from entering and prioritizign with Article 9.

Front 23

9-308

Back 23

A purchaser of chattel paper or an instrument who gives new value and takes possession of it in the ordinary course of his business has priority over a security interest in the chattel paper or instrument

(a) which is perfected under Section 9-304 (permissive filing and temporary perfection) or under Section 9-306 (perfection as to proceeds) if he acts without knowledge that the specific paper or instrument is subject to a security interest; or
(b) which is claimed merely as proceeds of inventory subject to a security interest (Section 9-306) even though he knows that the specific paper or instrument is subject to the security interest.

Front 24

Vienna Park

Back 24

Ct held right to receive funds from escrow not "money" under UCC, but instead was a "general intangible" A creditor is interest

Front 25

§ 9-310. Priority of Certain Liens Arising by Operation of Law.

Back 25

When a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a security interest, a lien upon goods in the possession of such person given by statute or rule of law for such materials or services takes priority over a perfected security interest unless the lien is statutory and the statute expressly provides otherwise.

Front 26

9-502

Back 26

(a) [Sufficiency of financing statement.]
Subject to subsection (b), a financing statement is sufficient only if it:
(1) provides the name of the debtor;
(2) provides the name of the secured party or a representative of the secured party; and
(3) indicates the collateral covered by the financing statement.

Front 27

9-519(c)(1))

Back 27

Financing statements are indexed in the debtor’s name

Front 28

9-503

Back 28

A financing statement sufficiently provides the name of the debtor:

Front 29

9-503(c)

Back 29

debtors trade name is insufficent

Front 30

9-506(a)

Back 30

FS substantilally satisfying requirement of this part is effective even if it has minor erros, unless errors or omissions make FS seriously misleading

Front 31

9-506(b)

Back 31

FS that fails to sufficiently provide name of debtor is sufficeintly misleading

Front 32

9-506(c)

Back 32

If search would disclose FS that fails to sufficently provide D's name, then name provided does not make FS seriously misleading

Front 33

9-312(h)

Back 33

SP delivery to person other than debtor (312-h). Sp having possession of collateral does not relinguish possession by deliever to 1. a person other than debtor or 2. a lessee of collateral from the debtor in ordinary course of debtor's business.

Front 34

9-502(a)2

Back 34

(2) provides the name of the secured party or a representative of the secured party; and

Front 35

See 9-503: Official Comment 3
(Copper King)

Back 35

Debtor creates a security interest in favor of Bank X, Bank Y, and Bank Z, but not to their representative, the collateral agent (Bank A). The collateral agent is not itself a secured party. See Section 9-102. Under Sections 9-502(a) and 9-503(d), however, a financing statement is effective if it names as secured party Bank A and not the actual secured parties, even if it omits Bank A’s representative capacity.

Front 36

Progrowth Bank

Back 36

Court concluded that D's FS satisfied the filing provisions of UCC because they indicate coverage all of Hanson's Assets. The FS "serves the purpose of putting subsequent creditors on notice that debtor's property is encumbered - Thorp.

Front 37

9-313(c)

Back 37

New 9-313(c) Requires An Acknowledgment from the Bailee

Front 38

9-2043(d)

Back 38

(D) the collateral is deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights, and the secured party has control under Section 9‑104, 9‑105, 9‑106, or 9‑107 pursuant to the debtor’s security agreement.

Front 39

9-314(a)

Back 39

(a) [Perfection by control.]
A security interest in investment property, deposit accounts, letter-of-credit rights, or electronic chattel paper may be perfected by control of the collateral under Section 9‑104, 9‑105, 9‑106, or 9‑107.

Front 40

9-312: Exceptions

Back 40

(a) [Perfection by filing permitted.]
A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing.

Front 41

9-312 (b)1

Back 41

(b) [Control or possession of certain collateral.]
Except as otherwise provided in Section 9‑315(c) and (d) for proceeds:
(1) a security interest in a deposit account may be perfected only by control under Section 9‑314;

Front 42

310(c)

Back 42

as long as possession of collateral is maintained by an assignee or by the assignor or another person on behalf of the assignee, no further perfection steps need be taken on account of the assignment to continue perfection as against creditors and transferees of the original debtor.

Front 43

Key priority contexts

Back 43

Secured Creditor vs.
Other secured creditor
Pure unsecured creditor
Lien creditor
Other third parties, such as purchasers

Front 44

9-515(a)

Back 44

(a) [Five-year effectiveness.]
Except as otherwise provided in subsections (b), (e), (f), and (g), a filed financing statement is effective for a period of five years after the date of filing.

Front 45

9-515(d)

Back 45

(d) [When continuation statement may be filed.]
A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) or the 30-year period specified in subsection (b), whichever is applicable.

Front 46

9-308(c)

Back 46

(c) [Continuous perfection; perfection by different methods.]
A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this article and is later perfected by another method under this article, without an intermediate period when it was unperfected.

Front 47

9-322(a)1

Back 47

Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection

Front 48

Hilyard Drilling

Back 48

Filed continuing statment before 6 months therefore FS expired after 5 years. Unperfected

Front 49

Marshaling doctrine

Back 49

enior creditor must exhaust fund, to which junior creditor has no claim, before resorting to fund on which junior creditor also has cliam, so that junior creditor can collect more of the fund with overlapping claims. NB: senior creditor is only required to marshal if it will not prejudice itself in doing so.

Front 50

Computer Room

Back 50

Court answer that Sr. Creditor must marshal as to two security interest.

Front 51

9-102(a)(52)

Back 51

Perfected—attached and filed — before lien creditor status, SP wins

Front 52

(9-317(a)(2)(A)

Back 52

Naked financing statement insufficient, so lien creditor wins

Front 53

9-401(b)

Back 53

(b) [Agreement does not prevent transfer.]
An agreement between the debtor and secured party which prohibits a transfer of the debtor’s rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.

Front 54

Negative Pledges

Back 54

No priority under article 9 just contractal issue

Front 55

9-324(a)

Back 55

(a) [General rule: purchase-money priority.]
Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in Section 9‑327, a perfected security interest in its identifiable proceeds also has priority,

Front 56

9-324(b)1

Back 56

Need to be perfected when D receives possession of inventory (9-324(b)(1))

Front 57

(9-324(b)(2,3))

Back 57

Notice must be given to competing SI holder before D takes possession (9-324(b)(2,3))

Front 58

(9-324(a))

Back 58

20 days after possession to perfect and no notice required
Seller has good PMSI and will have priority