Perfection Flashcards
Methods of perfection
Automatic Perfection
1) PMSI in Consumer Goods
2) Sale of Promissory Note
3) Supporting Obligation
Perfection
Proceeds
For 20 days
- To remain perfected beyond 20 days must take new action unless:
1) Proceeds are cash
2) Collateral same office filing rule.
Perfection By Control
1) Investment Property
2) Noncomunsmer Deposit Account
3) Electronic Chattel Paper
Perfection
The creditors to ensure that they will have rights in the collateral that are superior to later creditors or others taking an interest in the collateral.
Perfection
Requirement
1) Name of Debtor
2) Name of Creditor
3) Indicate Collateral
* File in the right place.
Perfection
Must File
1) Account
2) General Intangibles
3) Commercial Tort Claim
Secured Perfection
Multiple State Tranaction
General Rule:
* State where debtor is located
Registered org:
* Where registered or Incorporated
Not Registered Org:
* Principal place of business or chief executive office.
Perfection
Possession of Collateral By Sp
A SP may perfect a SI in most types of collateral simply by taking possession of the collateral
- The SI is perfected from the moment of possession without relation back to the of attachment
- perfection only contrary so long as in possession.
Perfection
Debtor or Collateral Moves
General Rule:
* debtors location
Exception:
1) Collateral location governs all perfection issues regarding possession si: (Perfection by possession)
2) The law of collateral location governs in perfect security interest in timber and fixture, effect of perfection for SI in most other tangible or Quasi-tangible collateral
3) Special perfection and effect
Purchase Money SI in INventory or LiveStock
1) Pmsi must already be perfected Debtors possession (No 20 Day)
2) NOtice to conflicting creditor must be given before debtor gives possession
3) Notice will cover AAPC for inventory for 5 years
4) Written confirmation that describes inventory
PMSI livestocl
* 6 months not 5 years (notice)
