Perfection

Question 1

Perfection

Answer 1

Perfection requires attachment and proper perfection steps for that type of collateral.

Question 2

Filing

Answer 2

Effective for all collateral except deposit accounts and money.

Question 3

Possession

Answer 3

Effective for all collateral except general intangibles, accounts, non-consumer deposit accounts, and e-chattel paper.

Question 4

Automatic

Answer 4

Effective only for PMSIs in consumer goods (perfected upon attachment).

*Motor vehicles require notation on the certificate of title

Question 5

Control

Answer 5

Effective only for non-consumer deposit accounts, e-chattel paper and investment property.

Question 6

Temporary

Answer 6

Proceeds are perfected for 20 days; perfection will continue if:
1. the proceeds are identifiable cash proceeds
2. the security interest in the original collateral was perfected by filing and an interest in the type of collateral constituting the proceeds would be filed in the same place
3. the security interest in the proceeds is perfected within that 20 day period

Question 7

Control of Deposit Accounts

Answer 7

1. The secured party is the bank that maintains the account
2. The account is put in the secured party’s name
3. The parties agree to let the bank give the secured party control

Question 8

Financing Statement

Answer 8

The statement must have:
1. Debtor’s name and address
2. Secured party’s name and address
3. Description of the collateral (super generic description ok)

Must be authorized by debtor (by signing security agreement).

And must be filed in the secretary of state’s office where the debtor is located.

Good for 5 years (continuation = within 6 months prior).

Question 9

Debtor’s Name

Answer 9

Individual: unexpired license
Registered Org: name in public organic record

Errors will invalidate statement if it is rendered seriously misleading. It is not seriously misleading if it would be discovered under the debtor’s correct name with the filing office’s standard search logic.

If a name change renders the statement seriously misleading, it is effective for anything acquired before the name change and for 4 months after.

Question 10

Debtor’s Location

Answer 10

Individual: Domicile
Registered Org: state of incorporation
Unregistered: place of business or executive offices

If the debtor moves, the security interest will become unperfected in 4 months.

If the collateral moves, the security interest will become unperfected in 1 year.