PERFECTION

Question 1

DEFINITION OF PERFECTION

Answer 1

Notice to the World (CREDITORS) if PERFECTION comes before all 3 elements of attachment are present, perfection will occur upon attachment (rEMEMBER CASE WHERE Bank files first and then attaches)

Question 2

FORMS OF PERFECTION

Answer 2

AUTOMATIC
BY POSSESSION
BY CONTROL
NOTATION IN TITLE
FILING FINANCIAL STATEMENT

Question 3

AUTOMATIC PERFECTION

Answer 3

PMSI CONSUMER GOODS
OR
RETAINS CONTROL/POSSESSION OVER COLLATERAL

Question 4

PERFECTION BY POSSESSION

WATCH OR PLEDGE

Answer 4

a. Moment of possession without relation back to the time of attachment and
b. Continues so long as possession is retained.
C. MONEY: If security interest is in money, can ONLY perfect by possession

Question 5

NO PERFECTION BY POSSESSION

Answer 5

ACCOUNTS
DEPOSIT ACCOUNTS
GENERAL INTANGIBLES

Question 6

PERFECTION BY CONTROL

Answer 6

INVESTMENT PROPERTY
CHATTEL PAPER
DEPOSIT ACCOUNT (ONLY BY CONTROL)

Question 7

PERFECTION OF CHATTEL PAPER (CONTROL)

Answer 7

When a system showing the transfer of interests in chattel paper reliably establishes the secured party as the assignee.

Question 8

PERFECTION OF INVESTMENT PROPERTY (CONTROL)

Answer 8

When the secured party has taken whatever steps are necessary to be able to have the investment property sold without further action from the owner. (Title theory mortgage?)

Question 9

PERFECTION OF DEPOSIT ACCOUNT

Answer 9

i. Bank maintained
ii. If secured party not bank by
1. Account in secured party’s name
and
2. Authenticated Record gives control to creditor (control agreement)

Question 10

PERFECTION OVER CARS AND TRUCKS

Answer 10

Cars and Trucks BUT: if inventory (car dealer) must perfect by filing a financing statement against inventory

Question 11

FINANCIAL STATEMENT CONTENTS

Answer 11

DEBTOR NAME DL, NAME COMM
DEBTOR ADDRESS
CREDITOR (SP): NOT ISSUE
DESCRIBE COLLATERAL

Question 12

NAME ERROR IN FINANCIAL STATEMENT

Answer 12

SP - NO BIG DEAL

DEBTOR- NOT SERIOUSLY MISLEADING (USE FILING OFFICE SEARCH LOGIC WOULD RETURN WRONG FS THEN OK)

Question 13

CLERICAL ERRORS IN FS

Answer 13

IF BY FILING OFFICE DO NOT AFFECT

Question 14

DEBTOR NAME CHANGE IN FS

Answer 14

IF SERIOUSLY MISLEADING THEN 4 MONTHS TO CURE, IF NOT …

Question 15

SERIOUSLY MISLEADING NAME IN FS

Answer 15

a search under the debtor’s correct name, using the filing office’s standard search logic, would not retrieve the financing statement with the debtor’s former name

Question 16

DESCRIPTION OF COLLATERAL IN FS MUST

Answer 16

REASONALBY ID

• NORMAL VOCABULARY
• UCC 9 CLASS
• BUT MAY ENCOMPASS ALL (SA does not allow)

Question 17

REAL PROP FS

Answer 17

must also indicate that it is to be filed in the real property records (so that the filing officer sees that it gets to the right place), provide a description of the real property to which the collateral is related (must “reasonably identify” the real estate—a metes and bounds description is not necessary), and name the record owner if the property belongs to someone other than the debtor.

Question 18

SIGNATURE IN FS

Answer 18

NO SIGNATURE IS REQUIRED vs SA

Question 19

WHAT DOES SIGNATURE IN SA DO

Answer 19

• Authorized filing of financing statement

- Ipso Facto: When Debtor sings SA he authorizes Creditor to file FIS.

Question 20

FILING OF FS GENERALLY

Answer 20

SECRETARY OF STATE

Question 21

FILING OF FS REAL PROPERTY

Answer 21

REAL ESTATE RECORDER

Question 22

FILING OF FS FOR MULTIPLE STATES FOR DEBTOR

Answer 22

INDIVIDUAL - PPR
CORP - INC
ORG - PPB

Question 23

IF D MOVES THEN

Answer 23

MUST FILE FS IN NEW STATE WITHIN FOUR MONTHS OF MOVE

Question 24

IF COLLATERAL MOVES

Answer 24

HAS ONE YEAR TO FILE FS, OR BECOMES UNPERFECTED

Question 25

THE EFFECTIVE PERIOD OF A FS IS

Answer 25

5 YEAR - 6mo. CONTINUATION STATMENT NOT BEFORE NOT AFTER AND DOES NOT REQUIRE AUTHORIZATION (ALREADY GAVE)

Question 26

TERMINATION OF FINANCIAL STATEMENT

Answer 26

upon receiving an authenticated demand by the debtor, must within 20 days provide the debtor with a termination statement to the effect that the secured party no longer claims a security interest under the financing statement.

Question 27

TERMINATION OF FS IN CONSUMER GOODS

Answer 27

ONE MONTH AFTER NO OBLIGATION OR 20 DAYS AFTER RECEIVING AUTHENTICATED DEMAND FROM D

Question 28

TEMPORARY AND CONTINUED PERFECTION

Answer 28

perfected security interest in whatever proceeds the debtor receives in exchange for that collateral for 20 days. To remain perfected in those proceeds beyond 20 days, the secured party must take new action to perfect its interest.

Question 29

EXCEPTION TO PERFECTION OF PROCEEDS

Answer 29

1. CASH
2. FS IN 20 DAYS
3. SAME OFFICE RULE (FS, PLACE, NOT $ FROM SALE)

Question 30

PROCEEDS CASH V SWAP

Answer 30

Cash unperfects in 2. Swap does not. Example: Debtor sells inventory for credit and accounts are created (Same office rule)