Perfection

Question 1

Perfection

Answer 1

Gives notice to world of the security interest. Necessary for priority purposes. Occurs after attachment + requirements for perfection met

Question 2

Methods of perfection

Answer 2

Filing a financing statement at public office, taking possession (only for goods or tangible intangibles), taking control (only applies for intangible intangibles and investment property), automatic perfection

Question 3

Automatic perfection

Answer 3

Automatic perfection for 20 days for proceeds of collateral and permanently for PMSI in consumer goods (except cars and fixtures).

Question 4

Fixture filing

Answer 4

Fixtures are attached to real estate and intended to be permanent. Fixture filing must meet financing statement requirements +description of the real property.

Question 5

Perfection effectiveness

Answer 5

Financing statement is effective for 5 years. Can be continued by filing continuation statement w/in 6 months of expiration.