Financing Statement Flashcards
A financing statement must include
3
- name of debtor
- name of secured party
- description of the collateral
For a financing statement, what is required for description of the collateral
super generic description can work
A fixture filing must include
4
-filed where real estate is filed
- name of debtor, name of secured party, and a description of the collateral
- indicate that it covers fixtures
- describe real estate involved; and,
- State the owner of the real estate’s name
What happens if a financing statement is filed in the wrong place?
Makes the financing interest ineffective; thus, there is no valid perfection
Can a filing be made in advance of attachment?
yes
What type of errors will make a filing statement ineffective?
- minor errors will not
2. seriously misleading errors will make ineffective
Per se seriously misleading errors
- mistake in the debtor’s name (unless search logic of system brings it up)
What happens to financing statement if the debtor changes his name?
There are 4 months to correct the name changes to show the true name
What happens to financing statement when debtor sells collateral resulting in proceeds?
Will be perfected for 20 days
Stay perfected automatically if
- Filed financing statement covers the original collateral
- Proceeds, hypothetically would be perfected if proceeds were filed in the same office as collateral
- the proceeds are not cash (has to be non-cash)
What to do if you get cash proceeds?
Indefinitely perfected beyond 20 days in the cash proceeds
If debtor moves to another state, the secured party must
must file a new financing statement in the new state within 4 months of debtor’s move or else its interest will lose its perfected status.
-continuously perfected if within four months
When does a financing statement lapse?
five years after the date of filing
How to renew a financing statement?
can file a continuation between 4.5 years -> 5 years
