Sec Trans

Front 1

Types of collateral under article 9?

Back 1

con goods, farm pro, inventory, equipment, intruments, documents of title, accounts, deposit accounts, health care insurance receivables, chattel paper, electronic chattel paper, letter of credit right, commercial tort claims, general intangibles, investment property, proceeds

Front 2

if something is used for mixed uses how is it catagorized?

Back 2

primary use test

Front 3

what's a security interest?

Back 3

the right to keep or sell the collateral if debtor defaults

Front 4

what's pmsi?

Back 4

purchase money security interest, is 1st priority, when creditor or 3rd party advances funds.

Front 5

what are steps to establishing creditors rights against debtor to security?

Back 5

1. Creation- possession or security agreement.
2. attachment- secured party must give value, debtor must have rights in collateral

Front 6

whats a security agreement?

Back 6

a security agreement is an authenticated record, signed by debtor, describing collateral, and must be control.

Front 7

what are the elements of attachment?

Back 7

must give value, not gift (but pre-existing debt can have value.
debtor must have present interest in collateral, except 10 day for additional security, commercial tort claims.

Front 8

what does creditor need to have rights against people other than debtor?

Back 8

There must be perfection. (gives notice)

Front 9

what is perfection?

Back 9

5 ways. File, possession, control, automatic, or temporary

Front 10

how do you perfect by filing?

Back 10

you have to file financing statement with names, addresses, and description of collateral (search logic). In location of debtor.

Front 11

what's control for perfection?

Back 11

for deposit accounts bank agrees to act on instructions of secured. securities you need possession if certificate, registered with company if not, or get intermediary to agree to your control

Front 12

how is there automatic perfection?

Back 12

pmsi in consumer goods, assignments of accounts, healthcir, or payment intangibles, sale of payment intangibles or promissory notes.

Front 13

how do you get temporary perfection?

Back 13

grace period 4 months after goods and debtor move to different state or organization changes name. Twenty days for proceeds unless original was filed in same place, proceeds are identifiable cash proceeds, or you perfected security interest during the grace period. 20 days for instruments.

Front 14

who gets priority between secured party and lien creditor?

Back 14

Key is perfection. (20 day grace period for PMSI).

Front 15

who wins when perfected secured party against a purchaser?

Back 15

-consumer to consumer then take free unless there was a filing. no automatic perfection.
-business purchaser- secured party prevails
-purchaser from business- purchaser takes free even if filing
HDC rule applies

Front 16

Secured party v. Secured party?

Back 16

first to file or perfect wins. except super priorities

Front 17

what are super priorities in battle of too secured parties?

Back 17

if PMSI in inventory gives notice to earlier creditor and files before debtor takes pocession, then they have priority. PMSI in equipment gets the grace period to perfect and doesn't have to give notice.

Front 18

what are priorities in proceeds between too secured parties?

Back 18

you get the same date as the original perfection as long as you re-perfect within 20 day grace.

Front 19

fixtures and accessions for secured v. secured?

Back 19

fixures work with first to perfect or file with pmsi superpriority, accessions become part of whole and subject to title law.

Front 20

who does secured party have rights against in default?

Back 20

the debtor and any guarantor, and if it is non-good, such as account, the secured party can notify account debtor to start paying him.

Front 21

how does secured party get possession?

Back 21

self-help- unless it will breach the peace

replevin- court action

Front 22

how can secured party sell (disposes) the stuff it repossesses?

Back 22

public or private sale- it must use commercial reasonableness, and it must give notice in reasonable time unless parishable.

Front 23

what are the notice requirements to disposses?

Back 23

non-consumer goods- describe parties and collateral, method of sale, time and place of sale.
consumer goods- also need description of liability, telephonebumber to find cost of redeeming, and phone or address to get additional information.

Front 24

what if you don't comply with disposition requirments?

Back 24

liability for damages for loss caused by failure tro comply plus $500. If consumer goods- 10% of purchase price, and all interest charges to be paid over the life of the loan.

Front 25

acceptance of collateral in full or part satisfaction?

Back 25

in non-consumer goods cases secured party and debtor can agree to turn over collateral as credit against debt. in consumer goods cases parties can agree to voluntary turnover only for full satisfaction.

Front 26

How are proceeds of dispostion allocated?

Back 26

1. expenses of retaking, holding , preparing, and disposing of collateral 2. satisfaction of obligation secured by security interest, 3. satisfaction of obligation by subordinate security interest if secured party received demand, and 4. debtor or trustee.