R6 topics Flashcards
How are consumer PMSIs perfected?
Upon attachment.
How are inventory and noninventory (equipment) PMSIs perfected
Upon filing. An inventory PMSI receives priority because of perfection when they filed the financing statement BEFORE the debtor receives the inventory. They also have to give any prior creditors notice of the PMSI before the debtor receives the inventory.
An equipment PMSI, doesn’t have to be filed before the debtor receives the equipment, as long as they file it before 20 days, they are still considered perfected. No requirement to give any prior creditors notice of the PMSI.
What is a floating lien on a good?
It is an after acquired clause, which allows the secured party to acquire a security interest in a good that the debtor acquires in the future.
Not permitted to be used on consumer goods
When a debtor defaults, what are the rights that a creditor has if the collateral is a consumer good and the debtor has paid 60% of more of the loan?
The creditor must sell the good within 90 days AFTER REPOSSESSION.
When is a creditor a PMSI?
When they advanced money for the collateral or the collateral was bought on credit.
What is chattel paper and what
-Chattel paper: A writing that provides evidence of the monetary obligation and the security interest in the good. Basically paper that recites the indebtedness.
What 3 things must occur for attachment
[PIG]
- Property owned by debtor (“rights”)
- Interest is created (signed security agreement OR take possession)
- Give value to the debtor (A line of credit is value. a promise to give value in the future is not sufficient)
what is indemnification when dealing with suretys
The surety’s right to be reimbursed for the amount that she was required to pay as a result of the debtors failure to pay the creditor.
Define Solvent & insolvent
when someone has more assets than liabilities.
Insolvent: when someone is going into bankruptcy.
What is creditors compostion
An agreement between the debtor and two or more creditors that each creditor receives a portion of their claim as full payment.
Suretyship–What is contriubution?
Once one co-surety pays the creditor, he has the right to receive a pro rata share or contribution from all other co-sureties.
What does the Fair debt collection practices act (FDCPA) prevent agains
curbs abuses by “collection agencies” in collecting consumer debts. Suretys don’t have to apply to these rules when attempting to collect their own debt.
If the collection agencies don’t abide by these rules then the debtor can file for a $1,000 damage award
Federal Trade Commission
FTC can bring administrative enforcement actions under the Act to form
What is a debenture bond?
A surety bond that officials to obtain bonds from a surety for faithful performance of their duties.
What is subrogation?
A surety’s right to enforce the creditor’s right against the principal, after the surety had to cover the payment. Ex: Get collateral that the creditor was entitled to ect.
