Attachment/ perfection of security interest

Question 1

Attachment

Answer 1

When a security interest is legally enforceable

• must be supported by consideration given
• debtor must own the rights to collateral or have possession
• secured interest must be recorded

Question 2

Perfection of Interest

Answer 2

Gets higher priority over others claiming rights after perfection takes place
Attachment MUST take place 1st before perfection

Question 3

Perfection of interest occurs by:

Answer 3

Filing a Financing Statement

Possessing the Collateral

Question 4

Automatically perfected when

Answer 4

store sells consumer good on credit - store retains security int
bank finances purchase of consumer good - bank retains security int