Ch. 9: Temporary auto. perfection & post-filing changes

Question 1

If the debtor’s name changes after the filing of the financial statement/perfection..
1) what must happen for it to remain perfected?
2) How long do they have to do this?

Answer 1

amend the financing statement within 4 months.

Question 2

if debtor moves out of state after the filing of the financial statement..
1) how long will the SI remain perfected?
2) what must happen for the SI to remain perfected continuously?

Answer 2

1) 4 month
2) re-file in the new state w/I the 4 mo window since change occurred

Question 3

what happens if re-filing of a financial statement occurs past the due date/time?

Answer 3

the collateral acquired after the 4mo is not covered by the financing statement

But, everything prior to the change remains perfected/covered

Question 4

When a debtor moves out of state, what needs to be done for the perfection to continue?

Answer 4

must re-file in the new state within 4 months to remain continuously perfected

the SI will remain perfected for 4 months after the debtor moves out fo state, and collateral purchased within this 4 months window will be covered.

Question 5

If a collateral is transferred to a new debtor, who lives out of state, how long does the secured party have to re-file the financing statement?

Answer 5

1 year

Question 6

Temporary Automatic Perfection

Answer 6

if a SI is perfected by possession in an instrument, negotiable document, certified security, or goods stores w/ a bailee, the SP can give the collateral back to the debtor for limited purposes
- to sell, exchange, or to enforce the debtor’s rights in the collateral

SP is perfected temporarily for 20 days
- SP must either file a financing statement or re-possess the collateral w/I 20 days to remain continuously perfected

Question 7

What happens to the SI if the collateral is sold/leased/licensed that results in proceeds?

Answer 7

the SI automatically attached to the proceeds

Question 8

What happens to the SI if the collateral is sold/leased/licensed that results in proceeds?

Answer 8

the SI automatically attached to the proceeds

Question 9

Initially, how many days does the SI attach to the proceeds automatically from sale/lease, etc.?

Answer 9

20 days