attachment Flashcards
what happens when attachment occurs
C becomes a secured party
attachment steps
SP gives value
D has rights in collateral
authenticated security agreement
who doesnt have rights in stolen collateral?
thieves
what must you put in security agreement
reasonable description of collateral
cannot say ALL MY ASSETS
exception to authenticated SA
SP in control or possession
pursuant to an oral SA
what do you have to do if you want SI in after acquired property?
put after acquired clause in SA
future advances
clause in SA
this collateral will secure future loans
If SP is in possession, what must he do?
Keep reasonable care of collateral
Keep collateral identified
How does attachment work for proceeds
Auto attaches for IDable proceeds
Attachment and commingled goods
SI in individual items ends
SI now in the product made
Ex: SI in eggs and flour. Guy baker a cake. Now you have SI in cake
When does a PMSI in goods exist
Lender PMSI
Seller PMSI
Lender PMSI
lender loans money to d, allowing him to acquire the goods with said money
Lender has SI in those goods
Seller PMSI
goods bought on credit
Seller has PMSI in the goods D bought
