Priority

Question 1

Special Priority Rule for Deposit Accounts

Answer 1

1) Control customer at Bank where account held.
2) Control through bank holding account
3) Control though agreement according to priority and time
4) Person who has control wins over person who has interest and no Control.

Question 2

Secured Party v. Judgement Lien Holder (Statutory Lien)

Answer 2

Elements:
1) Service or materials must be made in ordinary course or repair - person business

2) The lien must arise by statutory or common law (not agreement or judicial process)
3) The lien must be possessory

Loss of possession:

• loss of possession is loss of priority
• If mechanic takes back, some jurisdictions say lost priority

Question 3

PMSI Priority Against Buyer + JLC (Lien)

Answer 3

PMSI takes priority over buyer and creditor.
* Files within 20 days of delivery collateral

• BIOC

Question 4

Consumer to Consumer Priority

Answer 4

1) buyer of Consumer Goods
2) Seller of Consumer Goods
3) W/ Knowledge of Si
4) Value

5) Before SP files FS
* even with auto perfection, need to file.