Perfection Flashcards
What must be in a financing statement?
Financing statement—must contain (i) the debtor’s name, (ii) the secured party’s name, and (iii) a description of collateral; it is a notice filing
What are the basic methods of perfecting a security interest?
filing, possession, control, and automatic perfection
When may a filing office refuse a financing statement?
a filing office may only refuse a financing statement for the failure to (i) pay the required fee, (ii) submit the financing statement by an authorized method, or (iii) identify the debtor
What is the requirement for a debtor’s name on the financing statement
Legal name. Trade names are insufficient.
When would an error in a debtor’s name render a filing statement ineffective?
a financing statement is not effective unless a standard
search under the debtor’s correct name would disclose the statement
Note: must update financing statement within 4 months of a debtor’s name change
What is required for the description of collateral in a financing statement?
unlike security agreement, the financing statement may include a super-generic description of the collateral (“all debtor’s assets”) if the description sufficiently indicates the collateral
Must a debtor authorize the filing of a financing statement?
Yes, but they need not sign anything.
Where is a financing statement filed?
the VA State Corporation Commission is the location for central filing of the financing statement
When is a financing statement effective?
upon delivery to the filing office and tender of the filing fee (unless filing office justly refuses it)
How long is a filing statement effective for and when must it be renewed?
For five years. Must be renewed through a continuation statement within six months of expiration.
How is possession handled in terms of perfection?
an SI in goods, instruments, negotiable documents, money, tangible chattel paper, and certificated security may be perfected by possession
perfection exists only during the period of possession
What collateral requires “control” for perfection?
Letter of credit rights and deposit accounts
When are PMSIs perfected?
Immediately upon attachment (no financing statement needed)
When and for how long is an interest in proceeds perfected?
Immediately upon attachment but only for 20 days (except for cash, which is indefinite, or if the financing statement is broad enough to cover the proceeds)
What is the only way to perfect a security interest in a vehicle?
By notation of the security interest on the certificate of title.
