Priorities

Question 1

What is general creditor and their priority?

Answer 1

General creditor have interest in collateral but no security interest.

SI always takes priority over a general creditor

Question 2

What is judicial lien creditor and their priority?

Answer 2

a creditor that has obtained interest through judicial process

perfected SI has priority over judicial lien, but judicial lien has priority over unperfected SI

Question 3

What is PMSI exception to judicial lien priority?

Answer 3

PMSI that is obtained and perfected within 20days of receiving goods takes priority over judicial lien

Question 4

what is a transferee and what is the priority against secured party?

Answer 4

a transferree is someone who obtains full title to the collateral through the debtor

secured party will have priority unless they otherwise agree

Question 5

What is buyers rights against unperfected SI

Answer 5

Buyer obtains title through purchase, buyer takes free of SI if for value and without notice

Question 6

What is buyers rights against perfected SI

Answer 6

buyer will take with security interest

Question 7

What is BOCB?

Answer 7

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

Question 8

What is consumer buyer?

Answer 8

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

Question 9

What is chattel paper and how is the purchase affect priority?

Answer 9

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

Question 10

what is effect of buyer not in ordinary course of business

Question 11

Who takes priority when both are perfected SI?

Answer 11

the one who files first

lapse in filling affects the day

Question 12

Who takes priority when there is perfected SI and unperfected SI

Answer 12

perfected

Question 13

Who takes priority when there are two unperfected SI?

Answer 13

first to attach

Question 14

What is PMSI in goods

Answer 14

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

Question 15

PMSI v. non pmsi

Answer 15

psi takes priority

Question 16

PSMI v. any security interest

Answer 16

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

Question 17

PSMi in livestock or inventory v any SI

Answer 17

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

Question 18

who has priority when there are two perfected PMSI

Answer 18

the first to file unless

seller with PMSI has property over lender with PMSI

Question 19

Proceeds in OMSI

Answer 19

priority of these goods generally extends to proceeds of the original collateral if SI is perfected when D receives possession

Question 20

SI in fixture v. real property interest

Answer 20

SI in fixture has probity over interest in real property where the fixtures are associated IF

SI is perfected before real property is recorded

Question 21

Perfected SI in fixtures v. Judical lien

Answer 21

perfected sI has priority

Question 22

SI in fixures v pr prior construction mortgage

Answer 22

mortgage has priority if recorded before goods become fixtures

Question 23

Proceeds

Answer 23

Article 9 does not apply to deposit accounts but if the scout received proceeds the proceeds are subject to Article 9

Question 24

general rule for proceeds and there priority

Answer 24

first to file first to perfect

filling for the original collateral is the same for proceeds

Question 25

future advances prority

Answer 25

first to file first to perfect, time advance is made has no bearing

Question 26

investment property

Answer 26

SI held by secure party with control over collateral has priority over a secured party without control over collateral