Definitions

Question 1

Security Interest

Answer 1

Interest in personal property or fixtures which secures payment or performance of an obligation.

Question 2

9-203

Answer 2

Attachment
SI attaches to collateral when it becomes enforceable against D unless expressly postponed

Value
D has rights in collateral
Authenticated SA with description of collateral

Possession
Security certificate delivered to sec party
Control (deposit accounts, electronic chattel paper, investment property, letter of credit rights, or electronic documents)

Question 3

Perfection

Answer 3

Unless otherwise provided, SI perfected if it has attached and all applicable requirements for perfection are met

9-310 - 9-316

File
Possession
Control 
Automatic
Certificate of Title

Question 4

Continuous Perfection

Answer 4

Original SI perfected by one method then another without intermediate period when unperfected

Question 5

9-309

Answer 5

Automatic perfection

PMSI

Question 6

Filing does not perfect:

Answer 6

SI in deposit accounts, letter-of-credit rights, or money

Question 7

9-315a Disposition of Collateral

Answer 7

SI continues in collateral notwithstanding sale, lease, license, exchange, etc. unless secured party authorized disposition free of SI

Question 8

Perfection of SI in Proceeds

Answer 8

9-315c

SI in proceeds perfected if SI in original collateral was perfected

Question 9

Continuation of Perfection of Proceeds

Answer 9

21st Day

1) a. filed FS covers original collateral
b. proceeds are collateral in which SI may be perfected by filing in same office as FS
c. proceeds are not acquired with cash proceeds

2) proceeds are identifiable cash proceeds
3) SI in proceeds perfected when SI attaches to proceeds or within 20 days thereafter

Question 10

PMSI Priority (a)

Answer 10

Consumer goods or equipment

Priority over conflicting SI in same goods if PMSI perfected when D receives possession or within 20 days thereafter

Question 11

PMSI Priority (b)

Answer 11

Inventory
Priority over SI in same inventory or chattel paper or instruments & proceeds if
1) PMSI perfected when D receives perfection
2) authenticated notification (sec party to conflicting SI)
3) conflicting SI receives notification within 5 years before D receives possession
4) notification states has/has expectation of acquiring PMSI in inv

Question 12

Account

Answer 12

Right to payment of monetary obligation

Question 13

Cash Proceed

Answer 13

Money
Cash
Deposit Account

Question 14

Chattel Paper

Answer 14

Record of monetary obligation + SI

Question 15

Collateral

Answer 15

Property subject to SI

Question 16

Equipment

Answer 16

Goods other than inventory, farm products, consumer goods

Question 17

Farm Products

Answer 17

Goods with respect to which D is engaged in farming operation:
Crops, products, livestock, supplies used or produced

Question 18

Fixture

Answer 18

Goods that have become so related to particular real property that an interest arises under real property law

Question 19

Fixture Filing

Answer 19

FS covering goods that are or are to become fixtures

9-502

Question 20

General Intangible

Answer 20

Default- including payment intangibles and software

Question 21

Good

Answer 21

Consumer goods
Inventory
Farm products
Equipment

Question 22

Inventory

Answer 22

Goods, other than farm products, that are leased, sold, furnished under contract of service, or
Consist of raw materials, work in process, or materials used or consumed in business

Question 23

Proceeds

Answer 23

1) Acquired on sale, lease, etc.
2) Collected on/distributed of collateral
3) Rights arising out of collateral

Question 24

Instrument

Answer 24

Some piece of paper that shows a right to a monetary obligation