Mod 29 Secured Transactions Flashcards
Chattels
Personal property
Purchase Money Security Interest (PMSI) Creditor 2
1 creditor who advances money or credit to enable a debtor to
Obtain collateral and
2 takes security interest in collateral
After Acquired Property Clause
2) it is used most often with…
Creditor takes as collateral property to be acquired by debtor at
Later date
2) used most often with inventory and equipment
Attachment is…
Creditor’s rights vs. the debtor only
3 elements of Attachment
1 agreement
2 value by creditor
3 debtor must have rights
Attachment elements:
Agreement
Must have agreement between creditor and debtor (oral or written)
Attachment elements:
Must have an agreement between the creditor and debtor 2
1 written agreement need only be signed by debtor
2 can be oral only if creditor takes possession with debtor’s
agreement (pledge)
Attachment elements:
Value
Must have value given by creditor
Attachment elements:
Debtor must have…
Debtor must have rights in collateral
There is no attachment until…
All 3 elements have occurred
Perfection is…
Creditor’s rights vs. subsequent 3rd parties
Creditor is unperfected
Creditor is unprotected
Perfection by creditor
Taking possession of collateral with debtor’s agreement
Perfection by Creditor taking Possession of the collateral with debtor’s agreement
Only way to perfect with negotiable instruments or stocks and
Bonds
Perfection by Filing a Financing Statement:
Gives…
Constructive notice to all 3rd parties of the security interest
Perfection by Filing a Financing Statement:
Must contain…3
1 names and addresses of parties
2 general description of collateral
3 signature of debtor
Perfection by Filing a Financing Statement:
Filing is the only way to…
Perfect accounts receivable
Perfection by attachment is…
An automatic but very limited type of perfection