Priorities in a Nutshell Flashcards

1
Q

Excluding investment property and nonconsumer deposit accounts in which the party with control generally has priority, the ranking is as follows:

A

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2
Q

(1)

A

Buyers in the ordinary course of business who do not know the sale is in violation of the security interest.

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3
Q

(2)

A

Holders in due course and the like of negotiable instruments

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4
Q

(3)

A

Transferees of funds from deposit accounts

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5
Q

(4)

A

Certain purchasers of chattel paper or instruments who have possession or control

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6
Q

(5)

A

Possessory lienholders

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7
Q

(6)

A

Article 2 claimants with possession of goods

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8
Q

(7)

A

PMSIs

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9
Q

(8)

A

Perfected security interests and liens that have attached to the collateral.

  1. as between perfected security interests in the same collateral, the first to file or perfect has priority;
  2. As between a perfected security interest and a lien, the lien has priority if it was created before the security interest was filed or perfected. Otherwise, the perfected security interest has priority
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10
Q

(9)

A

Purchasers of collateral who buy for value and receive delivery without notice of any unperfected security interest.

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11
Q

(10)

A

Unperfected security interests

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12
Q

(11)

A

The debtor

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