3. Perfection Flashcards
What is required for Perfection?
Attachment
Additional step
What is Perfection?
Creditor has rights against other parties (creditors) who may have same interest in Debtor’s property
What are the types of methods of perfection?
Automatic perfection By possession By control By notation of lien on certificate of title Filing financing statement
When is automatic perfection available?
Consumer goods
When is perfection by possession available?
Possession of collateral
Retained possession
When is perfection by control available?
Investment property (necessary sale steps taken)
Electronic chattel paper (system reliably establishes Assignee)
Non-consumer deposit account
What is required for perfection by notation of lien on certificate of title?
Relevant governmental authority (to note Secured Party’s lien on certificate of title)
What is required for filing financing statement?
Debtor's name Description of collateral - Reasonable identification (Normal vocab, Art 9 categories) Secured Party's name Real property Authentication (by Debtor)
What if Debtor’s name in financing statement was mistakenly made?
Seriously misleading mistake => NOT allowed to be used
- Can NOT retrieve erroneous financing statement (in filing office’s standard search logic)
Changed name (which makes seriously misleading mistake) => Statement usable before/within 4 months after change
What is required for filing financing statements for real property?
Indication of filing in real property records
Description of real property
E.g. Minerals, timber to be cut, fixtures
Where should financing statement be filed?
Secretary of State
How long is financing statement effective?
5 years
Extension allowed
- Must file continuation statement within last 6 months
