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SECURED TRANSACTIONS ART 9 UCC > PERFECTION > Flashcards

PERFECTION Flashcards

1
Q

DEFINITION OF PERFECTION

A

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)

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2
Q

FORMS OF PERFECTION

A 
AUTOMATIC
BY POSSESSION
BY CONTROL
NOTATION IN TITLE
FILING FINANCIAL STATEMENT
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3
Q

AUTOMATIC PERFECTION

A

PMSI CONSUMER GOODS
OR
RETAINS CONTROL/POSSESSION OVER COLLATERAL

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4
Q

PERFECTION BY POSSESSION

WATCH OR PLEDGE

A

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

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5
Q

NO PERFECTION BY POSSESSION

A

ACCOUNTS
DEPOSIT ACCOUNTS
GENERAL INTANGIBLES

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6
Q

PERFECTION BY CONTROL

A

INVESTMENT PROPERTY
CHATTEL PAPER
DEPOSIT ACCOUNT (ONLY BY CONTROL)

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7
Q

PERFECTION OF CHATTEL PAPER (CONTROL)

A

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

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8
Q

PERFECTION OF INVESTMENT PROPERTY (CONTROL)

A

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?)

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9
Q

PERFECTION OF DEPOSIT ACCOUNT

A

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)

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10
Q

PERFECTION OVER CARS AND TRUCKS

A

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

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11
Q

FINANCIAL STATEMENT CONTENTS

A

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

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12
Q

NAME ERROR IN FINANCIAL STATEMENT

A

SP - NO BIG DEAL

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

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13
Q

CLERICAL ERRORS IN FS

A

IF BY FILING OFFICE DO NOT AFFECT

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14
Q

DEBTOR NAME CHANGE IN FS

A

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

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15
Q

SERIOUSLY MISLEADING NAME IN FS

A

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

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16
Q

DESCRIPTION OF COLLATERAL IN FS MUST

A

REASONALBY ID

  • NORMAL VOCABULARY
  • UCC 9 CLASS
  • BUT MAY ENCOMPASS ALL (SA does not allow)
17
Q

REAL PROP FS

A

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.

18
Q

SIGNATURE IN FS

A

NO SIGNATURE IS REQUIRED vs SA

19
Q

WHAT DOES SIGNATURE IN SA DO

A
  • Authorized filing of financing statement

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

20
Q

FILING OF FS GENERALLY

A

SECRETARY OF STATE

21
Q

FILING OF FS REAL PROPERTY

A

REAL ESTATE RECORDER

22
Q

FILING OF FS FOR MULTIPLE STATES FOR DEBTOR

A

INDIVIDUAL - PPR
CORP - INC
ORG - PPB

23
Q

IF D MOVES THEN

A

MUST FILE FS IN NEW STATE WITHIN FOUR MONTHS OF MOVE

24
Q

IF COLLATERAL MOVES

A

HAS ONE YEAR TO FILE FS, OR BECOMES UNPERFECTED

25
Q

THE EFFECTIVE PERIOD OF A FS IS

A

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

26
Q

TERMINATION OF FINANCIAL STATEMENT

A

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.

27
Q

TERMINATION OF FS IN CONSUMER GOODS

A

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

28
Q

TEMPORARY AND CONTINUED PERFECTION

A

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.

29
Q

EXCEPTION TO PERFECTION OF PROCEEDS

A
  1. CASH
  2. FS IN 20 DAYS
  3. SAME OFFICE RULE (FS, PLACE, NOT $ FROM SALE)
30
Q

PROCEEDS CASH V SWAP

A

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

SECURED TRANSACTIONS ART 9 UCC (3 decks)

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