5-8 Priorities, Default, Fixtures, Accessions Flashcards
priority between perfected secured parties
When there are conflicting perfected security interests in the same collateral, priority goes to whichever party was the FIRST TO EITHER FILE OR PERFECT, whichever is earlier, provided that there is no period thereafter when there is neither filing nor perfection.
priority between unperfected secured parties
when two unperfected security interests conflict, the first to ATTACH has priority
priority between unperfected and perfected secured parties
a perfected security interest generally prevails over an unperfected security interest.
PMSI superpriority
PMSIs enjoy a superpriority - they’re superior to prior perfected security interests in the same collateral if certain conditions are met
What is a breach of the peace?
Any conduct by the secured party that has the potential to lead to violence is a breach of the peace.
What is self-help repossession?
After default, the secured party is entitled to take possession of the collateral without judicial process (that is, by self-help) if this can be done without a breach of the peace.
Definition of Accession
Accessions are goods that are physically united with other goods in such a manner that the identiy of the original goods is not lost. (tires on a car)
Does a security interest in the whole perfected under an applicable certificate of title statute have priority over the security interest in the accession?
Yes.
Does a PSMI in equipment have priority over conflicting security interests?
Yes, PMSI in equipment has priority over conflicting security interests if the PMSI is perfected when the debtor receives possession of the equipment (or within 20 days thereafter)
Does a perfected security interest typically prevail over an unperfected security interest?
Yes.
A security interest may be perfected by filing as to all kinds of collateral EXCEPT
deposit accounts and money.
How is a security interest in a nonconsumer despoit account perfected?
By CONTROL.
Who has control over a deposit account?
The bank in which the nonconsumer deposit account is maintained automatically has control over a desposit account.
Other means of gaining control besides being the bank in which the nonconsumer deposit account is maintained:
(1) putting the deposit account in the secured party’s name; or
(2) agreeing in an authenticated record with the debtor and the bank in which the deposit account is maintained that the bank will comply with the secured party’s orders regarding the account without the debtor’s further consent.
