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12 Cards in this Set
- Front
- Back
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Attachment
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SP gives value,
D has rights in Collateral, D signs SA or possession (+ oral agreement) |
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Goods: by item or type- 5 types
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1) Account
2) Farm Products 3) Inventory 4) Consumer goods 5) Equipment |
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After-acquired prop clauses
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Valid in prop to be acquired at later time, except consumer goods acquired > 10 days after SP gives value.
-automatically attaches when D acquires the described property. |
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PMSI for S
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PMSI: secures repayment of credit that enabled D to acquire the prop.
S-PMSI: SP sells D collateral on credit, taking a PMSI for the unpaid purchase price. MUST sign SA granting SI to the S to have a PMSI. |
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PMSI for L
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L makes loan for purpose of permitting D to acquire the collateral + loan must have been used for all/part of purchase price.
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Perfection
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-makes SI enforceable against 3P
4 methods: 1) Automatic P 2) Perfection by Possession of Collateral 3) Perfection by Endorsement on Motor Vehicle Certificate-of-Title 4) Perfection by Filing FS: signed/authorized by D, give name & address of SP & D, describe collateral -Sec of State, unless fixtures/oil/gas/minerals/standing timber |
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Priority
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-resolves conflicting claims to collateral
1) Unperfected vs. Unperfected: 1st to attach wins 2) Perfected vs. Unperfected: perfected wins. 3) Perfected vs. Perfected: 1st to File or Perfect has priority, UNLESS PMSI 4) Perfected vs. PMSI: a) non-inventory collateral: super-priority if filed w/in 20 days of possession b) inventory collateral: super-priority if File + Notice given pre-possession -Consignements: Consignor (owners) PMSI in consigned goods as inventory (Notice to Prior SPs + File) |
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GFP for value
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-takes subject to perfected SI and free from unperfected SI.
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Proceeds
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-perfected SI usually follows sold collateal + attaches to proceeds of sale.
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Remedies: enforcement of SI
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1) If Default, Repossession w/o Breach of Peace.
2) Repossession + sale: private or auction. a) Notice of sale to D an all SPs b) every aspect of sale is "commercially reas" including time/method/manner/place/terms |
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Buyers
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-Unperfected SI: BGF takes free from unperfected SI
-BOCB: takes free of perfected SI. "BOCB" (GFP from a dealer) customer/merchant buys: a) GFP: in GF w/o knowledge that sale violates SA b) in ordinary course of S's (D's) business c) from a S (D) in the business of selling collateral of that kind (besides farm products) |
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Garage Sale
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consumer goods for B & S: take free of unperfected SI.
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