7. Accessions

Question 1

What is Accession?

Answer 1

Goods physically united with other goods
Identity of goods is NOT lost (still exists)

E.g. Tires on cars

Question 2

What is required for perfection of Accession?

Answer 2

Collateral becomes accession

Security interest is perfected

Question 3

What is the rule for priority of Accession?

Answer 3

(Same as for Priority)

Question 4

Which interest has priority between security interests in Accession and the Whole?

Answer 4

Security interest in whole

Question 5

What is required to remove accession from other goods?

Answer 5

Security interest in accession must have priority over ALL interests in whole

Question 6

What if there is physical injury to accession?

Answer 6

Secured party is liable for cost of repair

Question 7

Can reimbursed party refuse removal of accession?

Answer 7

Yes (until secured party gives adequate assurance for performance of reimbursement obligation)