Automatic Perfection

Question 1

Indefinite Period of Perfections: PMSI

Answer 1

PMSI in CONSUMER GOODS perfects automatically upon attachment

No need to file financing statement

Question 2

Temporary Automatic Perfection: Delivery of Collateral to Debtor

Answer 2

If collateral is delivered to debtor for purpose of selling or exchanging it, SI in the collateral remains temporarily perfected for 20 DAYS

Question 3

Temporary Automatic Perfection: New Value

Answer 3

If new value is given under an authenticated security agreement, an SI in certified securities, negotiable documents, or instruments is automatically perfected for 20 DAYS FROM ATTACHMENT

Question 4

Temporary Automatic Perfection: Debtor Name Change

Answer 4

4 MONTH period to discover change and amend financing statement

Question 5

Temporary Automatic Perfection: Debtor Moves Out of State

Answer 5

Perfected SI will remain perfected for 4 MONTHS

Question 6

Temporary Automatic Perfection: Collateral Moves Out of State

Answer 6

Perfected SI will remain perfected for 1 YEAR