Financing Statement Flashcards
What must be included in the financing statement?
(1) name of the debtor
(2) name of the creditor
(3) description of the collateral
How does a financing statement sufficiently describe the collateral?
if it provides a description of the collateral that reasonably identifies what is described. Can be super generic
Who must authorize the financing statement?
the debtor
Whether it says so or not, what authorizes the financing statement?
the security agreement
What is a fixture?
Good that is attached to real property so it becomes part of the real property
What must be included in a fixture filing?
(1) contain all info required in a financing statement
(2) indicate it covers fixtures
(3) indicate it needs to be filed in the real property records
(4) provide a description of the real property that the fixture is related to
What if a financing statement is filed in the wrong place?
It’s ineffective
What happens if a financing statement contains minor errors?
It’s still effective UNLESS
the errors make the financing statement seriously misleading.
In a financing statement, failure to provide the name of the debtor is:
seriously misleading
What is the standard search logic exception?
A financing statement that fails to sufficiently provide the name of the debtor isn’t misleading if a search of the records under the debtor’s correct name still discloses the financing statement.
What if a debtor changes their name?
If a debtor’s name change results in a seriously misleading financing statement, the unamended financing statement will only be effective to perfect interests acquired within 4 months of the name change
What if the debtor moves to another state?
If a debtor moves to another state, the secured party must file a new financing statement in the new state within 4 months of the debtor’s move or else its interest will lose perfected status
How long is a filed financing statement effective?
Five years after the date of filing
When must a continuation statement for a filing statement be filed in order to be timely?
6 months before the expiration of the 5 year period
