Priorities Flashcards
What is general creditor and their priority?
General creditor have interest in collateral but no security interest.
SI always takes priority over a general creditor
What is judicial lien creditor and their priority?
a creditor that has obtained interest through judicial process
perfected SI has priority over judicial lien, but judicial lien has priority over unperfected SI
What is PMSI exception to judicial lien priority?
PMSI that is obtained and perfected within 20days of receiving goods takes priority over judicial lien
what is a transferee and what is the priority against secured party?
a transferree is someone who obtains full title to the collateral through the debtor
secured party will have priority unless they otherwise agree
What is buyers rights against unperfected SI
Buyer obtains title through purchase, buyer takes free of SI if for value and without notice
What is buyers rights against perfected SI
buyer will take with security interest
What is BOCB?
buyer will take collateral free of any interest if
buyer pays for value and the item is not farm product
buyer purchases in ordinary court of business from
seller in tehir regular course of business
good faith
and without notice of SI
What is consumer buyer?
Consumer buyer will take free of SI if the following requirements are met and there is no financing statement
- purchases goods for value
- for personal, family, or household use
- from consumer seller
- without knowledge of interest
What is chattel paper and how is the purchase affect priority?
when you give value and has possession or control of collateral
- purchase in good faith + ordinary course of business
- chattel paper does not indicated an assignment to ID assignneee
or purchases made without knowledge that purchases violated someone SI
what is effect of buyer not in ordinary course of business
Who takes priority when both are perfected SI?
the one who files first
lapse in filling affects the day
Who takes priority when there is perfected SI and unperfected SI
perfected
Who takes priority when there are two unperfected SI?
first to attach
What is PMSI in goods
a secured party gave value to Debtor and debtor incurred obligation to enable to acquire right in or use of the goods
or
secured party sold goods to debtor and debtor incurs an obligation to pay secured party all or party of the purchase price
PMSI v. non pmsi
psi takes priority
PSMI v. any security interest
if pmsi is not in goods or livestock, it will have priority if perfected by the time Debtor receives possession of the collateral and money secured sends authenticated notice of PMSI to holder of any conflicting SI
PSMi in livestock or inventory v any SI
PMSI has priority if perfected by the time the debtor receives possession of collateral, and purchase money secured party send authenticated notice of PMSI to holder of any conflicting SI
who has priority when there are two perfected PMSI
the first to file unless
seller with PMSI has property over lender with PMSI
Proceeds in OMSI
priority of these goods generally extends to proceeds of the original collateral if SI is perfected when D receives possession
SI in fixture v. real property interest
SI in fixture has probity over interest in real property where the fixtures are associated IF
SI is perfected before real property is recorded
Perfected SI in fixtures v. Judical lien
perfected sI has priority
SI in fixures v pr prior construction mortgage
mortgage has priority if recorded before goods become fixtures
Proceeds
Article 9 does not apply to deposit accounts but if the scout received proceeds the proceeds are subject to Article 9
general rule for proceeds and there priority
first to file first to perfect
filling for the original collateral is the same for proceeds
future advances prority
first to file first to perfect, time advance is made has no bearing
investment property
SI held by secure party with control over collateral has priority over a secured party without control over collateral
