perfection

Question 1

what is the basic way to perfect a security I

Answer 1

by filing a FINANCING STATEMENT

Question 2

where do you file a finacing statemetn

Answer 2

SECRETARY of STATES office

Question 3

what is perfection

Answer 3

making rights enforceable against 3RD parties

Question 4

what is needed on a UCC 1

Answer 4

1) debtors name
2) secured creditors name
3) description of collateral

Question 5

what is an individual debtors name

Answer 5

name on the UNEXPIRED DIVERS LICENSE even if not the real name

Question 6

what is the name of a business

Answer 6

business name listed on its PUBLIC ORGANIC RECORD forming the entity

Question 7

when is a persons name become seriously misleading

Answer 7

if misspelled/ wrong name not found by searching on the correct full legal name, fin statement is SERIOUSLY MISLEADING

Question 8

what is a UCC 1 is seriously misleading because of name

Answer 8

INEFFECTIVE and SI unperfected

Question 9

what if a debtors name changes making the UCC 1 seriously misleading

Answer 9

NO EFFECT ON EXISTING COLLATERAL but UCC 1 INEFFECTIVE to perfect a SI in any NEW collateral acquired after 4 months the name change

Question 10

what is the time frame for name change for new collateral

Answer 10

4 months after unperfected

Question 11

is a super generic description ok for UCC 1

Answer 11

yes

- needs to be authenticated by Debtor to file UCC 1

Question 12

where to file a fixture filing

Answer 12

filed in mortgage records of county where land is

- recorder of deeds

Question 13

what must be included in fixture filing to be filed in mortgage of records where land is located

Answer 13

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

Question 14

how long are UCC 1 good for

Answer 14

5 years. perfects ANY security interest in described collateral in ANY secured loan b/w c and D

Question 15

what happens after the 5 year period for UCC 1

Answer 15

it LAPSES and is treated in most cases as if the statement HAD NEVER BEEN FILED

Question 16

what is the time frame for a continuation of UCC 1

Answer 16

must file b/w 6 months and 1 year of expiration of UCC 1

b/w 4.5 years and 5 years

Question 17

what law governs perfection (which state SOS)

Answer 17

where the DEBTOR is located

Question 18

where is debtor located for individual

Answer 18

principal place of residence

Question 19

where are registered orgaz located

Answer 19

orgz that file public organic record are located in their
STATE OF REGISTRY
- DE corp located in DE even if ALL ops in IL

Question 20

where are orgz who are not formed by public organic record (general partnerships)

Answer 20

where office is located if more than 1 state

at CEO office

Question 21

what happens if a debtor moves to a new state

Answer 21

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

Question 22

difference between when debtor moves to new state and new debtor name (4 months

Answer 22

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

Question 23

what is classified as certificate of title

Answer 23

cars, boats, motorcycles

Question 24

how do you perfect a certificate of title for car

Answer 24

by putting NOTATION on the certificate of title at DMV

Question 25

do a dealers inventory need to be put a notation on certificate of cars it sells?

Answer 25

NO. b/c inventory, just file a UCC 1

Question 26

possession: when is it superior perfection filing

Answer 26

1) instrument

2) chattel paper

Question 27

when are PMSI automatically perfected

Answer 27

PMSI in CONSUMER GOODS

Question 28

what is a PMSI

Answer 28

security interest that SECURES PAYMENT of w/e portion of the loan ACTUALLY USED to purchase the collateral

Question 29

are PMSI for consumer goods of car automatically perfected

Answer 29

NO. must put notation on certificate of title

Question 30

when is control the EXCLUSIVE method of perfecting a SI

Answer 30

deposit accounts

Question 31

what are the 3 ways to control deposit accounts

Answer 31

1) creditor is the bank where the deposit account is
2) CONTROL AGREEMENT: bank agrees to follow the secured creditor’s instructions with respect to the $ in the account OR
3) the creditor can be added to account name

Question 32

what is the steps for indirect holdings of securities accounts?

Answer 32

same as deposit accounts

1) broker holding is entitlement or account
2) CONTROL AGREEMENT
3) creditor listed as securities account holder

Question 33

when are proceeds AUTOMATICALLY PERFECTED (3 ways)

Answer 33

1) original UCC 1 might describe the proceeds
2) identifiable CASH PROCEEDS
3) perfection as a matter of law

Question 34

what is perfection as matter of law steps

Answer 34

1) the original security interest was perfected by filing
2) PROCEEDS are collateral in which the SI can be perfected in SAME OFFICE as the original office AND
3) proceeds are NOT CASH PROCEEDS

Question 35

short hand for perfection as matter of law of proceeds

Answer 35

1) UCC perfected by filling
2) proceeds are collateral which could be perfected in original UCC 1 office (SOS or DMV)
3) not cash proceeds used to buy