Financing Statement

Question 1

Financing Statement Must Include

Answer 1

1. name of debtor
2. name of secured party
3. description of covered collateral

Question 2

Sufficient Description of Collateral in a Financing Statement

Answer 2

must reasonably identify what is described

may indicate financing statement covers all assets or personal property - supergeneric description is OK

unlike security agreement

Question 3

Who must authorize financing statement

Answer 3

the debtor

if debtor has signed security agreement debtor has authorized filing of financing statement. Need not specifically state

Question 4

Special Rule for Fixtures

Answer 4

1. name of debtor, lender, and description of property
2. State that agreement covers fixtures
3. State it must be filed in county clerks office
4. Describe real property it is attached to
5. if debtor is not owner of real property, name of owner of property

Question 5

Special Rule for Cooperative Interests

Answer 5

Name of debtor
name of lender
description of property
filed in land records of the county where property is located

Question 6

How can the financing statement fail

Answer 6

filed in the wrong place
does not contain required information
not authorized by debtor

all will cause security interest to not be perfected

Question 7

Errors or Omissions allowed

Answer 7

Minor errors are allowed
only seriously misleading errors will cause financing statement to be ineffective

incorrect name of debtor is SERIOUSLY MISLEADING

Question 8

Search Logic Exception

Answer 8

search of records of filing office under debtors correct name using standard search logic discloses an incorrectly spelled financing statement

the financing statement is not seriously misleading

Question 9

Changes Affecting Effectiveness of Financing Statement:

Debtor Name Change

Answer 9

bank has 4 months to modify financing statement.

failure to do so results in lapse

Question 10

Changes affecting effectiveness of financing statement:

Proceeds

Answer 10

automatically perfected for 20 days and will lapse unless
1. filed financing statement covers original collateral, proceeds can be perfected by filing, not acquired with cash.
2. proceeds are cash - perfected indefinitely
3 secured party perfects interest in 20 days by filing new financing statement

Question 11

Debtors Change of Address

Answer 11

must file in new location within 4 months

Question 12

Financing Statement is effective for:

Answer 12

5 years

may file continuation statement and financing statement will be effective for another 5 years

Question 13

Continuation Statement Filing period

Answer 13

must be filed within 6 months of the expiration of the financing statement