Attachment and perfection Flashcards
What does attachment mean?
Means that the security interest is enforceable.
What are the three requirements for attachment? THINIK VCR
VALUE- must be given to creditor
CONTRACT- called the security agreement must evidence the secured transaction unless creditor has possession, record must be authenticated and reasonably identify collateral
RIGHTS- Debtor must have rights in collateral. After acquired collateral rights are enforceable.
In general who do we have to put on notice to allow for perfection?
Put the world on notice of secured party’s existence
What are methods of obtaining perfection?
Take possession or auto perfection for PMSI’s in consumer goods.
What is a PMSI?
Purchase Money Security Interest is a security interest that enables the debtor to purchase the goods.
What does the secured party do to get a PMSI?
Files a notice of security interest in public records. Financing statement is filed providing information and description of collateral. Statement filed centrally with secretary of state in state where debtor located.
Where is the filing state?
Where debtor located, for individual this is state of principal residence, for company it is state under who’s laws it is organised, for collateral being timber, minerals, fixtures it is filed locally in the county where blackacre is located.
