perfection Flashcards
what is the basic way to perfect a security I
by filing a FINANCING STATEMENT
where do you file a finacing statemetn
SECRETARY of STATES office
what is perfection
making rights enforceable against 3RD parties
what is needed on a UCC 1
1) debtors name
2) secured creditors name
3) description of collateral
what is an individual debtors name
name on the UNEXPIRED DIVERS LICENSE even if not the real name
what is the name of a business
business name listed on its PUBLIC ORGANIC RECORD forming the entity
when is a persons name become seriously misleading
if misspelled/ wrong name not found by searching on the correct full legal name, fin statement is SERIOUSLY MISLEADING
what is a UCC 1 is seriously misleading because of name
INEFFECTIVE and SI unperfected
what if a debtors name changes making the UCC 1 seriously misleading
NO EFFECT ON EXISTING COLLATERAL but UCC 1 INEFFECTIVE to perfect a SI in any NEW collateral acquired after 4 months the name change
what is the time frame for name change for new collateral
4 months after unperfected
is a super generic description ok for UCC 1
yes
- needs to be authenticated by Debtor to file UCC 1
where to file a fixture filing
filed in mortgage records of county where land is
- recorder of deeds
what must be included in fixture filing to be filed in mortgage of records where land is located
1) describe the real property with sufficient detail to support mortgage
2) state that it covers fixuters and
3) identify the owner of the realty if other than the owner of the fixture
how long are UCC 1 good for
5 years. perfects ANY security interest in described collateral in ANY secured loan b/w c and D
what happens after the 5 year period for UCC 1
it LAPSES and is treated in most cases as if the statement HAD NEVER BEEN FILED
what is the time frame for a continuation of UCC 1
must file b/w 6 months and 1 year of expiration of UCC 1
b/w 4.5 years and 5 years
what law governs perfection (which state SOS)
where the DEBTOR is located
where is debtor located for individual
principal place of residence
where are registered orgaz located
orgz that file public organic record are located in their
STATE OF REGISTRY
- DE corp located in DE even if ALL ops in IL
where are orgz who are not formed by public organic record (general partnerships)
where office is located if more than 1 state
at CEO office
what happens if a debtor moves to a new state
C has 4 months to discover move and REFILE in the new states SOS other wise UCC 1 filed in previous state is retroactively INEFFECTIVE
difference between when debtor moves to new state and new debtor name (4 months
1) MOVE: becomes RETROACTIVELY ineffective if not new UCC 1 filed in new state w/i 4 months
2) new name: still perfected for collateral at the time of name change AND UP TO CHANGE for 4 months. After 4 months not effective later on new acquired property
what is classified as certificate of title
cars, boats, motorcycles
how do you perfect a certificate of title for car
by putting NOTATION on the certificate of title at DMV
