perfection Flashcards
what does perfection do
provides notice to other parties that I have a security interest in the property.
what are the 4 methods to perfect
file financing statement
possession
control
automatic perfection
filing rules
filing financing statement in the office where D located
name of D and SP
describe collateral
what name to use for individual D or corp D?
name on license
name on articles
what if D’s name is messed up?
if seriously misleading, perfection ineffective
if you can search the real name and find the SI with the fake name, not seriously misleading
what if i change D name?
Temporary perfection
SP must file amendment w/n 4 months or else anything after is not perfected
does filing a FS expire? How would i prevent it from expiring?
yes after 5 years
unless you file a continuation statement within 6 m of expiration
what collateral cannot be perfected by filing
goods with title like cars
what can be perfected by possession?
goods, money, NI, chattel paper, certificated securities
how long does perfection last with possession?
until you lose possession
perfection by control?
deposit accounts, electronic stuff
whats the only way to perfect money?
possession
whats the only way to perfect deposit accounts?
control
be a customer at bank or deposit check
when does automatic perfection occur?
PMSI in consumer goods
2 ways to create a PMSI
creditor sells goods on credit and gets SI in those goods
advancing funds used to buy the goods and getting an SI
proceeds requirement
identifiable and traceable to collateral
are proceeds automatically perfected?
if SI in OG collateral is perfected, proceeds perfected for 20 days
How to keep perfection of proceeds after 20 days
if pursuant to FS
IDable cash proceeds
same office rule
what is the same office rule
if proceeds not cash, and would be filed in same place as OG collateral
What if the filing office fucks up?
If wrongfully filed in VA, they have power to review and remove
What if D moves out of state?
Temporary perfection
SI remains perfected for 4 m
Go re file in that new state
What if the collateral moves out of state?
If that same D still owns it, no need to re file
What if there’s a new D owner?
Temporary perfection
1 year to re file
What has priority over an SP who has perfected SI in OG collateral and proceeds
Proceeds of PMSI consumer goods
