Secured Transactions

Front 1

How does a creditor attach?

Back 1

Attachment creates an enforceable security interest in the debtor's collateral.

To attach, creditor must extend value, the parties must evidence the secured transaction with an authenticated security agreement (or creditor takes possession/control of collateral), and debtor must have rights in the collateral.

Front 2

How does a creditor perfect?

Back 2

Proper perfection protects the secured party's rights against competing creditors.

Once attached, a creditor attains perfection by placing the world on record notice of its existence, either by:

1. taking possession/control of the collateral

2. automatic perfection (PMSI - consumer)

3. filing notice of the security interest in the public records.

Front 3

Filing Statement (requirements)

Back 3

1. Debtor's name and address

2. Creditor's name and address

3. Description of the collateral

Front 4

General Order of Priority

Back 4

BIOC

APC

LC

BNIOC

AUC

GUC

Front 5

PMSI

Back 5

The extension of value by a lender who takes as collateral a security interest in the very item that its loan enables the debtor to acquire.

Front 6

AACF PAC v. PMSI

Back 6

Equipment: PMSI takes priority if he files properly within 20 days after debtor takes possession.

Inventory: PMSI takes priority if he files properly AND notifies AACF before debtor takes possession.

Front 7

Debtor Defaults, Creditor Remedies

Back 7

1. Self-Help (cannot breach the peace)

2. Repossession by Judicial Action (writ)

3. Strict Foreclosure (only w/o objection; 60% CG)

4. Sale (all commercially reasonable)

Front 8

Essay Layout (Priority)

Back 8

Article 9 Governs

Attachment (w/ dates)

Perfection (w/ dates)

Priority: first in time, first in right.