REG mod29

Question 1

What are the three ways that attachment may occur?

Answer 1

Filing
Possession
Automatic – applies to consumer goods only!

Question 2

Describe the difference between attachment of a security interest and perfection of security interest.

Answer 2

Attachment of a security interest is between the creditor and debtor. Perfection of the security interest essentially gives constructive notice of the rights of the secured interest to parties outside of the contract.

Question 3

What must happen prior to a creditor ‘perfecting’?

Answer 3

The creditor must first ‘attach’.

Question 4

What is attachment?

Answer 4

This is when a security interest is legally enforceable.

Question 5

If two creditors ‘attach’ to the same collateral, which creditor would prevail?

Answer 5

Generally, the first creditor to attach.

Question 6

Name the necessary requirements for a security interest to ‘attach’?

Answer 6

DR. AV
DR – Debtor has Rights to the assets
A - Agreement
V - Value must be given by creditor