Ucc Article 9

Front 1

SECURITY AGREEMENT

Back 1

Creates a contract between the debtor and the secured party

Front 2

FINANCING STATEMENT

Back 2

Provides notice about the security interest and lien to potential creditors

Front 3

ATTACHMENT

Back 3

In order for a security interest to attach, the parties must either agree to create a security interest or the debtor must take possession, value must be given, and the debtor must have rights in the collateral

Front 4

WHAT DOES ARTICLE 9 COVER (GENERALLY)

Back 4

Transactions that create a security interest in personal property or fixtures by contract.

Front 5

WHAT SPECIFIC THINGS DOES ARTICLE 9 COVER

Back 5

1. Agricultural liens
2. Sales of accounts, chattel paper, payment intangibles or promissory notes
3. Consignments

Front 6

ACCOUNT

Back 6

Right to payment of a monetary obligation

Front 7

PURCHASE MONEY SECURITY INTEREST (PMSI)

Back 7

Attaches to the extent that the goods are purchase-money collateral with respect to that security interest

Front 8

RULES ON PMSIs

Back 8

1. A PMSI in consumer goods is automatically perfected.
2. A PMSI in equipment must be perfected within 20 days of the debtor taking possession
3. A PMSI in inventory is perfected at the time the debtor takes possession and any secured party who has already perfected receives written notice.
4. A PMSI in fixtures must be perfectd within 10 days.

Front 9

GOODS TYPES

Back 9

1. Consumer goods (personal family or household use)
2. Equipment (business use)
3. Inventory (Raw materials and materials held for ultimate resale or lease)
4. Farm products (crops and livestock and supplies used or products produced by crops and livestock)

Front 10

IDENTIFICATION OF COLLATERAL

Back 10

Collateral must be reasonably identified
A supergeneric description is not sufficient under UCC,so words like "all the debtor's assets" do not reasonably identify collateral.

In financing statement, a supergeneric statement is sufficient.

Front 11

SECURITY INTEREST BEING ENFORCEABLE

Back 11

1. Value has been given
2. Debor has rights in collateral or power to transfer the collateral.
3. You have either:

a. Valid security agreement
b. Possession of collateral by secured party
c. If collateral is a security, the the security certificate has been delivered to the secured party.
d. If deposit accounts, chattel paper, investment property, letter of credit rights, or electronic documents, then the secured party has control of collateral.

Front 12

HOW DOES PERFECTION OCCUR?

Back 12

1. Taking possession of collatearl
2. Automatic perfection (PMSI in consumer goods)
3. Filing a valid financing statement (effective for 5 years)
4. Temporary perfection (valid for 10 days for proceeds, 21 days for docs and instruments)

Front 13

PRIORITY RULES (1)

Back 13

Perfected over unperfected.
If collateral is unperfected, then priority is based on time of attachment.

Front 14

PRIORITY RULES (2)

Back 14

1. BORC
2. PMSI
3. PERFECTED SECURED CREDITORS
4. LIEN CREDITORS
5. UNPERFECTED SECURED CREDITORS
6. UNSECURED CREDITORS

Front 15

ALIENABILITY OF DEBTOR'S RIGHTS

Back 15

An agreement between the debtor and hte secured party that prohibits a transfer of the debtor's rights in the collateral or makes the transfer a default does not prevent the transfer from taking effect

Front 16

RIGHTS AND REMEDIES ON DEFAULT

Back 16

The secured party may collect an obligation in a commercially reasonable manner or may take possession of the collateral upon default and need not wait for judicial intervention.