mee problem issues and rules

Question 1

Secured Party’s Rights upon Debtor default

Answer 1

a default occurs whenever the debtor fails to tender an obligation when due. Upon default, a secured party may reduce a claim to judgment, foreclose, or otherwise enforce the claim. If the collateral consists of accounts, receivable, the secured party may upon the debtor’s default, notify the person obligated on the collateral to make payment to the secured party. The notification must be authenticated by the secured party or the debtor, and reasonably identify the rights assigned.

Question 2

Priority Rules

general

perfected v unperfected

perfected v. perfected

Answer 2

The general rule regarding priority under Article 9 is that first in time, first in right. A perfected security interest always prevails over an unperfected security interest. Between two perfected security interests, the security interest with the earliest time of filing or perfection, whichever is earlier, which has continued without interruption will generally prevail.