Perfection of Security Interests

Question 1

How to attain perfection

Answer 1

By secured party taking possession of the collateral.

Automatic perfection for purchase money security interests (PMSI) in consumer goods.

Secured party files notice of the security interest in the public records.

Question 2

What is filed to put the world on notice?

Answer 2

security agreement could be filed (rare.

Financing statement (UCC #1)

Question 3

Requisite contents of a filing statement

Answer 3

simple & sparse

need only contain:

1) Debtor’s name and address
2) Creditor’s name and address
3) Description of Collateral (super-generic, such as “all of Debtor’s assets”, is OK)

Question 4

Where is financing statement filed?

Answer 4

Sec. of State in the State where debtor is located

If an individual, debtor is located in place of principal residence

If debtor is a registered organization, state under whose laws it is organized

exception: is collateral is timber, minerals, or fixtures, file locally in the county where real property is located