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25 Cards in this Set
- Front
- Back
UCC Article 9
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security interests in personalty (goods) and fixtures
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Art 9 Attachment
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creditor attaches by VCR: value must be given, contract, and rights in the collateral (not the brooklyn bridge)
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perfection
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puts the world on record notice; first to perfect takes first
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contract
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the security agreement / th e record
unless the secured party takes possession of the collateral must be authenticated and reasonably identify the collateral |
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PMSI
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purchase money security interests
automatic perfection for consumer goods for equipment, first priority by filing w/in 20 days for inventory, if filed and notified bank with AACC before store takes possession |
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BIOC
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#!) buyer in ordinary course
takes first priority, even over PAC (perfected attached creditor) |
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PAC
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#2) perfected attached creditor
but is still going to lose to BIOC or PMSI holder |
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LC
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#3) lien creditor
loses to BIOC, PMSI, PAC |
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NOCie
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#4) non-ordinary course buyer, someone purchases collateral outside of the ordinary stream of commerce - guitar from auto mechanic
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AUPie
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#5) attached unperfected creditor -
creates, attaches but fails to perfect defeats subsequent AUPie and GUC |
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GUC
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#6) General unsecured creditor -
didn't take any collateral |
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self-help repossession
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permitted, as long as creditor doesn't breach the peace;
breach if made over any protest; can't enter home w/o voluntary and contemporaneous consent |
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writ of replevin
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SP goes to ct to get a judicial writ, ordering sheriff to obtain possesion
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Strict foreclosure
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SF occurs when SP retains the collateral in full satisfaction; the debt is cancelled
SP must send a written proposal to all parties |
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60% rule
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if collateral is consumer goods and 60% has been paid, no strict foreclosure
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draft terms
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the drawer gives the order
the drawee is ordered to pay (the bank) the payee is the beneficiary |
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to qualify as a negotiable instrument
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WOSSUP
Writing; payable to Order or bearer (NOT "pay to Andy"); Signed; for a Sum certain; Unconditional; Payable on demand or at a definite time; Payable in currency |
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"Unconditional" (negotiable instruments)
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if there were conditions, it would be a K
if it merely refers to another writing, that's ok, unless it is "governed by" or "subject to" no more promises, so not "$5000 plus my rolex" |
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indorsement + sewage
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the indorser is liable for a bad check;
UNLESS he signed name + "without recourse" |
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HDC
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holder in due course takes (1) for value (2) in good faith (3) without notice of problem
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value for HDC
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unlike consideration, a mere promise is not value ("I promise not to throw a ball at you")
but old value is good value ("for the work last year") |
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shelter rule
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a transferee can have the rights of an HDC, even if transferee is a donee or otherwise fails to qualify
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HDC benefits
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HDC takes free from claims, free from personal defenses and subject only to real defenses
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real defenses & HDCs
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HDCs do take subject to real defenses
MADFIFI4 - material alteration; duress; fraud in the factum (real fraud, not personal fraud); incapacity; illegality; infancy; insolvency |
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personal fraud v. fraud in the factum
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HDC holds free from personal defenses, like personal fraud (seller tells her it's a 17th century ring, it's not);
but HDC is still subject to real defenses, FinF (lawyer tells him he's signing a card, but it's a promissory note) |