attachment Flashcards
what are the 3 requirements for attachment
1) VALUE must be given (usually past or present loan or binding promise of future loan)
2) debtor has to have RIGHTS in collateral and
3) debtor have AUTHENTICATED a SECURITY AGREEMENT that provides adequate description of the collateral
what does authenticated mean
signing or otherwise indicated assent in some perceptible form (sending email or voicemail)
when are oral agreements ok for security agreements
collateral in the c’s POSSESSION or control
what needs to be the description for a security agreement that is authenticated by debtor
must simply REASONABLY IDENTIFY generally by categories (inventory, equipment)
is a general description allowed for an authenticated security agreement>
NO. must REASONABLY IDENTIFY
what is the after acquired property clause for consumer transactions
after-acquied collateral clauses apply to consumer goods only if the consumer acquires the property w/i 10 DAYS of the secured valued having been given
proceeds
w/e or not security agreement says so, a SI ATTACHES AUTOMATICALLY to w.e the debtor receives for on account of .
- as long as IDENTIFIABLE as linked to the original collateral
does a perfected SI follow property into the hands of other people who acquire the collateral from the debtor?
YES unless the C consents to a release of the SI
what is a lease disguised as a sale
1) lease term over ENTIRE USEFUL life thing OR
2) OPTION TO buy leased thing at lease end for “nomial” VALUE
what is a lease disguised as a sale treated as
SI and UCC 9 governs
what is consignment of non-consumer goods worth more than 1k trated as
SI and ucc 9 governs
test for consignment of non-consumer gods worth more than 1k test
if merchant
1) acts under its own separate name
2) is not an auctioneer and
3) not generally known to sell other peoples goods
