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5 Cards in this Set
- Front
- Back
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Opening Argument
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The Washington variety of Revised Article 9 of the UCC governs security interests (SI) in collateral including personal property, fixtures, agricultural liens, and certain intangibles.
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Collateral
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• The UCC tangible collateral categories are inventory, equipment, consumer goods, farm products, manufactured homes, and the proceeds therefrom. The UCC intangible collateral categories include instruments, documents of title, chattel paper, accounts, deposit accounts, investment property, and general intangibles.
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Purchase Money Security Interest
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• A Purchase Money Security Interest (PMSI) has a “close nexus” with the collateral including the seller who takes back paper receivables or a bank loaning money to buy a particular piece of collateral. A general working capital loan does not qualify. A PMSI is allowed to perfect by mere attachment for consumer goods and has a 20-day grace period to perfect non-inventory by filing.
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Attachment
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• Attachment gives the creditor rights against the debtor, the collateral, and third parties who know of the SI. This requires a security agreement (SA), the debtor to have rights in the collateral, and value given by the creditor.
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Perfection
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• Perfection protects the creditors SI against other SIs, most transferees for value, and the bankruptcy trustee. Perfection may be achieved by attachment plus one of the following: possession, control, filing (in debtor’s principal state of business), mere attachment, or title certificate.
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