Perfecton

Question 1

A Security interest is perfected when

Answer 1

it has attached and all requirements for perfection are met

if requirements are met before attachment, security interest is perfected on attachment

Question 2

perfection

Answer 2

the process where secured party gives notice to the world of its security interest

Question 3

Methods of perfection - list

Answer 3

filing or taking possession of collateral

Question 4

Filing

Answer 4

filing of a financing statement in a public office

most common method

Question 5

Where can one file a financing statement

Answer 5

secretary of state

office of county clerk (limited circumstances - interest in fixtures, interest in co-op)

Question 6

Multistate transaction - where file?

Answer 6

file where debtor is located

Question 7

Where is a registered organization located

Answer 7

in the state of organization

Question 8

Where is a non-registered organization located?

Answer 8

debtors place of business or

chief executive office if more than one place of business.

Question 9

Where is an individual debtor located?

Answer 9

at their principal residence

Question 10

Perfection by Possession

Answer 10

only applies to tangible collateral

Question 11

Collateral in Possession of 3rd party

Answer 11

must authenticate a writing acknowledging in possession for another parties benefit

Question 12

Security interest in Cash Money

Answer 12

only way to perfect interest in cash is possession

Question 13

Duty of Care

Answer 13

secured party in possession must use reasonable care in custody of property

Question 14

Perfection by Control applies to what kind of collateral

Answer 14

investment securities
bank deposit accounts
letter of credit rights

Question 15

Control of Investment Securities in Bearer Form

Answer 15

must have possession of the security

Question 16

Control of Investment Securities in Registered Form

Answer 16

must have possession or endorsed over to secured party

Question 17

Control of uncertificated security

Answer 17

issuer agrees to comply with secured parties instructions

Question 18

Security interest in a deposit account - how to get control

Answer 18

1. secured party is the bank where account is
2. debtor, secured party, and bank agree in writing that bank will follow secured parties instructions
3. secured party becomes banks customer with respect to the deposit account

Question 19

Automatic Perfection

Answer 19

limited instances where perfection is automatic.

Most Common: Purchase Money Security Interest in consumer goods

Question 20

Security interest perfected by one method, and later perfected by another with no intermediate period of being unperfected

Answer 20

they are continuously perfected and perfection has not lapsed

Question 21

Certificated Securities

Negotiable Documents or instruments

Answer 21

automatic but temporary 20 day perfection

need to get control or file

Question 22

Secured party consents to disposition of collateral

Answer 22

security interest continues after disposition absent consent and will attach to proceeds