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33 Cards in this Set
- Front
- Back
Article 9 applies to any transaction, __ of its form, which is intended to create a security interest.
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regardless
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consignments which must comply with Art 9 are where the consigned goods are worth $__ or more, and the consignor did not use the goods as __ goods.
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$1,000; consumer
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Art 9 does not govern true leases of personal property, but does cover a lease that is actually an __ sale.
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installment
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The four classifications of "goods" are:
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• Consumer goods,
• Farm products, • Equipment, • Inventory |
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Money is excluded from goods, and so is Oil & Gas before __.
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extraction
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which goods classification of goods is the default classification?
i.e., it fits no other definition of goods. |
Equipment
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Inventory = goods held for sale or lease, raw materials and works in progress, as well as materials __ in the business.
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consumed
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To be a Farm Product, the goods must be:
i) in __ of the farmer engaged in farming operations, and ii) in an __ condition |
possession; unmanufactured
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If the good has multiple uses, its __ use determines its classification.
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principle
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bills of lading and warehouse receipts are examples of __.
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documents
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David used his truck and computer for collateral for a loan. later he trades his truck for a motorcycle and the computer for cash. The motorcycle and cash are __ of the original collateral.
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proceeds
note: proceeds may include collateral a creditor could not have otherwise have had a SI in, such as money. |
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The process by which a SI is created and becomes enforceable is called __.
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attachment
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Attachment requires three elements:
(VCR) |
i) Creditor gave VALUE,
ii) a security agreement (CONTRACT) iii) debtor has RIGHTS in collateral |
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When may the SA be oral?
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only where the collateral is in SP's POSSESSION
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__-generic descriptions, such as "all my personal property" are not allowed in the SA.
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super
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which type of collateral may not be described by type in the SA?
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consumer goods and commercial tort claims may not be described by type, the description must be more specific.
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Would the description, "all my consumer goods" be sufficient collateral description in the SA?
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no
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An after-acquired property clause in consumer goods will only work to cover consumer goods acquired w/in ___ of the creditor giving value.
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10-days
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after-acquired property clauses never work for __ __ claims.
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commercial tort
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Perfection requires:
i) __, and ii) one of the methods of perfection |
attachment
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A financing statement is good for __ from date of filing.
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5-years
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a "continuation statement" must be filled w/in __ months prior to the expiration date and before the 5 years expires in order to have continuous perfection.
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6
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the minimum penalty for the filing of a fraudulent financing statement is $__.
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$5000 plus costs and atty fees
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Automatic Permanent Perfection exists for PMSI's in __ __.
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consumer goods
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Note: Automatic permanent perfection for PMSI in consumer goods does not apply to either certificate of title items or __.
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fixtures
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waiver of notice for the sale of the collateral or the right to redemption must be given __ default.
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AFTER
*NO waiver of notice allowed in the SA. |
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What is the rule for an after acquired property clause in consumer goods?
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the after acquired property clause will only cover consumer goods acquired w/in 10 days of the creditor giving value.
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When can a security agreement be made orally?
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a security agreement may be oral ONLY if the collateral is in the SP possession.
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for a SI to be enforceable against the ∆, the SI must "__" to the collateral.
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ATTACH
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for a SI to be enforceable against the ∆, the SI must "ATTACH" to the collateral. Attachment requires:
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(i) that the creditor give VALUE,
(ii) the ∆ must have RIGHTS in the collateral, and (iii) one of the following: • a security agreement describing the collateral and authenticated by the debtor; • SP has possession of the collateral pursuant to the ∆’s agreement. • SP has control of a business deposit account or investment property pursuant to the ∆’s agreement. |
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Attachment requires:
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(i) the creditor gave VALUE
(ii) the ∆ has RIGHTS in the collateral, and (iii) either: • valid Security Agreement; • Possession by creditor; • Control by creditor |
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value is given by accepting delivery pursuant to a pre-existing contract for purchase, or generally, in return for any consideration sufficient to support a simple contract.
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Thus Value can be:
• consideration, or • delivery pursuant to a pre-existing contract for purchase |
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BIOC rule does NOT apply to what type of goods?
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farm products
*the BIOC rule does NOT apply to FARM PRODUCTS |