Ch 6. Perfection by filing

Question 1

what is a “Perfection”?

Answer 1

allows the secured party to have priority over a later party

Question 2

6 methods for “Perfection”

Answer 2

“Famous People Cant Avoid Attention”

• filing (most common)
• possession
• control
• alternative perfection systems
• perfection under a state’s certificate of title law
• automatic perfection

Question 3

How do you perfect by filing?

Answer 3

File the financing statement in the central filing office of the appropriate state

Question 4

Exception to perfect by filing: two common types of collateral that cannot be perfected by filing?

Answer 4

• Deposit accounts
• Cars (unless car is inventory)

Question 5

Where should a financing statement be filed? What does “Location of the debtor”mean for…
- A corporation?
- A BUS that’s NOT registered
- A BUS w/ multiple states
- Individuals
- Real property?

Exception?

Answer 5

• corporation: state of incorporation
• BUS that’s NOT registered: state which operates its Bus
• BUS w/ multiple states: where chief exec office located
• Individuals: state of their principle residence

Exception: Real Property-related collateral: file in county where property is located

Question 6

What are the required info for filing a financial statement?

Answer 6

name of debtor
name of the secured party
description of the collateral

Question 7

If you’re filing a financial statement of RP-related collateral, what are some additional requirements?

Answer 7

all elements of reg filing PLUS:
- financing statement must indicate that the security agreement covers this type of collateral
- must note that it is to be filed with the local RP records
- describe the RP to which the collateral relates
- name the record owner of the RP

Question 8

When filing the financial statement, what info is required, but non-essential?

Answer 8

address of both debtor and secured party
indication of whether the debtor is an individual or organization

Question 9

6 things that can be perfected with possession

Answer 9

goods, tangible chattel papers, instruments, negotiable documents, money, certificated security

Question 10

What can be perfected by control?

Answer 10

deposit account

Question 11

What is perfected automatically, indefinitely?

Answer 11

• PMSI in Consumer Goods
• Cash proceeds if the original collateral was perfected
• Same office rule

Question 12

How does perfection work on non-cash proceeds

Answer 12

automatic for 20 days

Question 13

What is perfected automatically