Priority Flashcards
1
Q
Does a PMSI in consumer goods perfect automatically?
A
YES.
2
Q
A consumer buyer of consumer goods takes free of a SI, even if perfected, unless _______________.
A
A consumer buyer of consumer goods takes free of a security interest, even if perfected, unless prior to purchase, the secured party filed a financing statement covering the goods.
3
Q
If a transferee of collateral is not a buyer, does the SI continue in the collateral?
If so, what is the exception?
A
If collateral is transferred and the transferee of the collateral is not a buyer, the security interest generally continues in the collateral, unless the secured party has authorized its sale free of the security interest.
