Ch 7. Advance issues in perfection by filing Flashcards
what’s the correct “debtor’s name” in a financing statement for 1) an organization; and 2) an individual?
organization : name on the articles of incorporation OR last public organic record filed w/ the state
individual:
- majority: non-expired driver’s license. If na, then legal name
- minority: Driver’s license works, but legal name is also ok.
Two ways to satisfy the “description of collateral” requirement?
1) use the same description used in the security agreement;
OR
2) use a super generic description
Errors in the financing statement do not affect perfection UNLESS it’s
seriously misleading.
errors in the debtor’s name is seriously misleading UNLESS it can still yield a correct search
under what 3 circumstances should the filing office refuse the financing statement?
- lack info specified in 9-515(b)
- creditor fails to tender fee
- creditor submits financing statement in an improper manner
if the filing office unjustifiably refuses the financing statement, what happens to the financing statement?
treated as if it’s been filed
Exception?
if a purchaser/secured party gave a value in reasonable reliance upon the absence of the record from the files. then, the financing statement will be ineffective.
In the financing statement, what must the “debtor’s name” contain if the debtor is: 1) an individual 2) an organization
The debtor’s correct legal name
the name on the articles of incorporation
(or the last organic record filed with the state)
What is the majority rule v. minority rule when it comes to an :individual” debtor’s name in financing statement?
majority: use the non-expired DL (or state-issued ID) name. If no DL, use legal name
minority: DL/state-issued ID/legal name ALL fine
if not continued, how long after filing the financing statement does it lapse?
5 yrs
how do you continue a financing statement?
by filing a continuation statement within 6 months before the FS lapse
