Ny Secured Transactions

Front 1

What 5 things could be collateral for a secured transaction?

Back 1

1. Consumer goods

2. Equipment (items used in business - cash registers)

3. Inventory

4. Farm Products

5. Fixtures

Front 2

Define attachment.

Back 2

It means that the security interest is enforceable.

Front 3

What are the elements of valid attachment? VCR

Back 3

1. Value must be given by creditor

2. There must be a contract or record

3. Rights in the collateral

Front 4

What are the elements of a valid contract/record of attachment and what is the agreement called?

Back 4

Called the security agreement and ...

1. Must evidence the secured transaction unless the secured party has taken possession of the collateral

2. Must be signed by debtor (acknowledge)

3. Must reasonably ID the collateral

Front 5

The debtor must have _______ in the collateral.

Back 5

Rights

Front 6

What is an after-acquired collateral clause and is it enforceable?

Back 6

1. It is an interest in collateral that the debtor will acquire later.

2. they are enforceable

Front 7

Define "perfection of security interests"

Back 7

1. It is a publicity device that the secured party uses to put the world on notice of the secured party's existence.

2. Protects against other creditors

Front 8

How does a secured party perfect?

Back 8

1. By secured party taking possession of collateral

2. Automatic perfection or purchase money security interests

3. Filing notice of the security interests in the public records

Front 9

What is a purchase money security interest and what is special about it?

Back 9

1. The secured party takes a security interest in the very object it enables the debtor to buy by lending the money.

2. It perfects automatically and is given special treatment under the UCC

Front 10

What is the most common route to perfection?

Back 10

Filing notice of the security interest in the public records

Front 11

What is filed when a secured party seeks to perfect by filing notice?

Back 11

UCC - Financing statement

1. Debtor's name and address

2. Creditor's name and address

3. Description of the collateral (general OK)

Front 12

Where is a UCC-1 financing statement filed?

Back 12

Centrally with the secretary of state where the debtor is located

1. Individual - place of principal residence

2. Org - state where organized

Front 13

What are the exceptions to the rule that a UCC-1 financing statement should be filed locally?

Back 13

If the collateral is ...

1. Minerals

2. Timber

3. Fixtures

Front 14

What are the 6 classes of creditors?

LAP dance then BNG

Back 14

1. Lien Creditor

2. Attached un-perfected creditor

3. Perfected Attached Creditor

4. Buyer in ordinary course

5. Non-ordinary course buyer

6. General unsecured creditor

Front 15

Who is an lien creditor

Back 15

General unsecured creditor who goes to court to get a lien on the collateral

Front 16

Who is an attached unperfected creditor

Back 16

Article 9 creditor who creates an enforceable security interest but either fails to perfect or messed it up.

Front 17

Who is an attached perfected attached creditor

Back 17

Article 9 creditor who succeeds in attaining perfection

Front 18

Who is a buyer in ordinary course?

Back 18

Someone who purchases the merchandise from a creditor's inventory.

Front 19

Who is a non-ordinary buyer in due course?

Back 19

A person who buys the collateral outside the ordinary stream of commerce.

Front 20

Who is a general unsecured creditor?

Back 20

Lender who did not take collateral

Front 21

Who will an Attached Unperfected creditor prevail against?

Back 21

Win - debtor, GUC, later AUP

Lose - PAC, LC, any other buyer with notice

Front 22

Who will the Perfected Attached Creditor win against?

Back 22

Everyone except

1. BIOC

2. PAC who filed first

3. Certain PMSI holders

Front 23

Who wins in a contest between two Perfected Attached Creditors?

Back 23

First in time

Front 24

Who wins in a contest between an After Acquired Collateral Financier and a Perfected Attached creditor?

Back 24

1. Collateral is inventory - PMSI if filed and notified b4 debtor takes possession and

2. Collateral is equipment - PMSI if files w/in 20 days of debtor taking possession

Front 25

Who wins in a contest between buyer in ordinary course and perfected attached creditor?

Back 25

Buyer in ordinary course

Front 26

What is the general rule for creditors resorting to self-help repossession?

Back 26

They can do it so long as they don't breach the peace?

Repossession over even mild debtor objection is a breach of the peace

Front 27

Can a creditor repossess when the collateral is inside the home of the debtor?

Back 27

Yes, but can only enter the home with voluntary and contemporaneous consent.

Front 28

Can a creditor repossess when the collateral outside the house?

Back 28

Yes, as long as there is no debtor objection.

Front 29

How can a creditor achieve repossession by judicial action?

Back 29

1. Get a writ of replevin

2. Sheriff goes and repossesses

Front 30

What occurs under strict foreclosure?

Back 30

Creditor retains the collateral in full satisfaction of the debt thus canceling the debt.

Front 31

When is strict foreclosure not allowed?

Back 31

If 60 percent of the debt is paid.

Front 32

One of the options open to a creditor when a debtor defaults is to _________ the collateral at a _________ or ________ auction.

Back 32

1. sell

2. public

3. Private

Front 33

If the sale of collateral at an auction does not satisfy the debt, the creditor may _________.

Back 33

Bring a deficiency judgment against the debtor.

Front 34

When is a debtor's right to redeem cut off?

Back 34

When the debtor has sold the property or completed a strict foreclosure.

Front 35

Generally what must the debtor pay off to redeem?

Back 35

1. Amount owed

2. Missed payments

3. Interest

4. Creditor's attorney's fees

Front 36

What must the debtor pay off under an acceleration clause to redeem?

Back 36

Entire debt plus interest.