Priority - State Law Flashcards
The party with priority gets what in a sale?
satisfied in full or in part.
If subordinate forecloses and sells collateral, what interests survive?
Senior interests only
UCC notice of sale - who receives it, times, effect of proper notice
Party forcing sale gives notice to other LH who have properly indexed FS or have perfected by filing. No notice for consumer goods or melting ice cubes. Party selling searches system 20-30 days before notice date and sends LH who appear on that search. If notice is met, subordinate liens are discharged by sale.
Secured parties have priority over lien creditor is before unsecured cr levies the…
SI is perfected (meet attachment and perfection), OR one of the conditions is met in 9-203b3 and FS is filed
PMSI secured party has priority over prior lien cr if…
upon attachment they file FS within 20 days of delivery of collateral
Future advances secured by SI beat a lien creditor if
FA is made within 45 days of creation of lien, FA is made without actual knowledge of lien, OR FA is made pursuant to commitment made at time you didnt have knowledge of lien
Real Estate FA have priority over prior liens only if made
w/o knowledge of lien OR pursuant to commitment made w/o knowledge of lien
Nonadvances get the priority of…
advance to which they relate
In the battle of SC v SC, the rule is
first in time first in right
SC PMSI v SC General rule
PMSI gets priority if PMSI perfected not later than 20 days after dr receives possession
SC PMSI v SC PMSI
if seller of time gives PMSI, it beats 3rd party PMSI. Otherwise, first in time.
PMSI in inventory is allowed if:
Financier perfects before dr receives possession AND they give notice to inventory lender (5 year notice life)
Buyers take subject to pre-existing SI UNLESS
SP authorizes disposition free of SI, buyer in ordinary course, unperfected SI w/o knowledge and w/value, future advances, garage sale/eBay
