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12 Cards in this Set
- Front
- Back
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What type of credit is :
1. a creditor sell the collateral on credit, retaining a security interest or 2. the creditor advances funds used by the debtor to purchase the collateral. |
PURCHASE MONYE SECURITY INTERESTS (PMSIs) credit
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What type of credit has PRIORITY over all other types of security interests in the same collateral.
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PURCHASE MONYE SECURITY INTERESTS (PMSIs)
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1. Creditor must EITHER take possession or control of the collateral OR
obtain an authenticated ( BY DEBTOR) record of a Security Agreement 2. the debtor must have rights in collateral, but need not own the collateral 3 a Financing statement is not Required. |
CREATION (ATTACHMENT) OF THE SECURITY INTEREST
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Secutity interest cannot be Perfected before it attaches to the __________, but Attachment and Perfection can occur at the same time.
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Collateral
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BUYER IN THE ORDINARY COURSE will Prevail over a _______ creditor, even if the buyer had knowledge of the security interest
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PERFECTED
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1. A second-hand consumer purchaser usually will take free of an automatically perfected security interest in collateral --- what kind of rule?
2 REMEMBER If secured party filed a Financing Statement - The secured party CAN repossess from the second-hand purchaser |
1. Garage sale rule
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A PMSI in __________ is automatically perfected. Perfection of a security interest in other goods collateral req. filing
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CONSUMER GOODS
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A PMSI in ________ has priority over other perfected security interests if filed anytime within 20 days of the debtor getting possession of the collateral.
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EQUIPMENT
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There is no 20 day grace period for a PMSI in _________ . Must be perfected before debtor gets possession and Notice must be given to other perfected parties in the same collateral
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INVENTORY
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FIST to File or Perfect has ______
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priority
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What party will have the HIGHEST priority in collateral (4)
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1. Buyer in ordinary course of business
2. A properly perfected PMSI holder, except in the garage-sale 3. perfected security interest holders and judicial lienholders once the lien has attached 4. Unperfected security interests |
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Perfection can be achiedved in 3 ways:
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FILING
POSSESSION ATTACHMENT (PMSI) |
