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11 Cards in this Set
- Front
- Back
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What is the scope of Art. 9?
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Art. 9 applies to consensual security interest in personalty (chattel or goods) & fixtures (NOT real estate)
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How does a creditor create an enforceable security interest in debtor's collateral, meaning how does the creditor attach?
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VCR
To attach we need: Value Contract Rights in the collateral |
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Attachment
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How we authenticate securitization so as to make the security agreement enforceable.
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Perfection
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Putting the world on record (constructive) notice of the existence of the security interest.
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What are the rules of priority?
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First to perfect takes first. First in time, first in right is the general norm.
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Remedies for default?
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Statutory & judicial remedies.
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What does Art. 9 apply to?
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It applies to consensual security interests in personalty or fixtures.
Note-- article 9 does not apply to mortgages (because this is on real property) or to debtor's liens (because these are not consensual). |
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Art. 9 divides goods into subcatgories-- tangible and intangible.
What are the subcategories of tangible goods? |
1. consumer goods: those items used for personal or familial purposes (fridge, car, etc.)
2. Equipment: items used in business (cash registers) 3. Farm products: crops, livestock, and supplies used in farming operations 4. Fixtures: items annexed to realty (sprinkler systems, furnace). |
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What is the key purpose of classifying tangible goods?
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To identify the primary use of the goods in the hands of your debtor.
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Why is this subjective test of classifying tangible goods important?
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It will be pertinent when determining whether perfection has occurred.
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Art. 9 divides goods into subcatgories-- tangible and intangible.
What are the subcategories of intangible goods? |
1. IP: patents, trademarks, copyrights
2. Equity: stocks, bonds, mutual funds 3. Proceeds: money coming in from the sale of collateral 4. Account Receivables: right to pay for goods or services 5. Debt: money owed from these debt instruments |
