Secured Transaction Generally

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Security interest

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Is an interest that a creditor has in a debtor's property (collateral) in order to secure payment of a debt.

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Seizure

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A creditor with an enforceable security interest may lawfully seize and sell the collateral to repay an overdue debt.

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Article 9

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Regulates contractual security interest in personal property and fixtures.

It describes how a creditor can creat a security interest that is enforceable against the debtor (attachment) and against 3rd parties (perfection); how a court should resolve conflicting claims to the collateral (priorities) and how a secured creditor can enforce the security interest (remedies).

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Formula for a secured transaction answer/ 1

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1) Question is governed by the UCC article 9 because it involves security interests in personal property and fixtures.

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Formula for a secured transaction answer/ 2

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2) organize your analysis into collateral section.

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Formula for a secured transaction answer/ 3

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3) for each secured lender or seller: 1) analyze whether its security interest attached. 2) whether the lender has a pmsi. 3) if the security interest has attached, then analyze whether, when and how the secured party perfected that interest.

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Formula for a secured transaction answer/ 4

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4) decide who has priority

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Formula for a secured transaction answer/ 5

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5) discuss if anyone bought that piece of collateral. 1) first decide the buyer's status. 2) then decide whether the buyer took free from the winning security interest or subject to it.

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Formula for a secured transaction answer/ 6

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6) If the collateral was sold, analyze priorities to proceeds

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Formula for a secured transaction answer/ 7

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7) then go to the next collateral section, then remedies (look at call of question).