Accessions

Question 1

Accession - Definition

Answer 1

• goods that are physically united w/ other goods in such a manner that the identity of the original goods is not lost (ex: tires on a car)

Question 2

Accession - Perfection

Answer 2

• if a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral

Question 3

Accession - Priority

Answer 3

• generally, rules for priority previously discussed apply to accessions

Question 4

Special Priority Rule - Vehicles

Answer 4

• security interest in an accession is subordinate to security interest in a whole (ex: car), which is perfected by compliance w/ the requirements of a certificate-of-title statute

Question 5

Removal of Accession

Answer 5

• secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole
• the secured party removing the accession is responsible for the cost of repair of any physical injury to the whole or the other goods
• a person entitled to reimbursement may refuse permission to remove until secured party gives adequate assurance for performance of ob to reimburse