Rules MEE Flashcards
What is SCOPE of Article 9
consensual security interests in personalty and fixtures
How does a creditor create an enforceable security interests aka how to ATTACH?
Value, Contract, Rights
Once attached how do we perfect?
Put on record notice
Debtor
owes $
Secured Party or Secured Creditor
entity who lends $
Security agreement
the K/record
Collateral
tangible good (consumer goods, equipment, inventory, farm products, fixtures)
NOT: patents, copyrights, stocks, bonds…
Attachement
means that the security interest is ENFORCEABLE and to do that we must have it ATTACHED
Creation of a enforceable security unit
ATTACHMENT by VCR
Value
must be given by the creditor (eg lends 50K and has now extended value)
Contract
SECURITY AGREEMENT – used when debtor retains control of collateral (if the creditor has control? No need for the s-agreement) Record MUST reasonably ID the collateral and must be authorized by the debtor
Rights
Debtor must have RIGHTS in the collateral
After Acquired Collateral Clauses
the floating lien ARE enforceable!
How do you create an enforceable security interest?
Attach by VCR (value, contract, rights)
Perfection of security interest?
Proper perfection puts the world on notice and protects the secured party from competing creditors
How do you perfect?
- By taking interest as the secured party in the collateral.
- file notice of security interest
- Autoperfection for PMSI
PMSI
security interest that enables debtor to purchase goods (West elm extends credit of 6k for bedroom set and takes PMSI in the set)
Filing notice of security interest in the public records includes:
Name and address of debtor and creditor, description (however generic) of the collateral, and file w/ Sec of St in the location of debtor! (if person? PPOR, if corp? Place of incorp, If minerals, timber, oil?Where prop is
Priority
More than one party stakes a claim in the same collateral - FIRST IN TIME FIRST IN RIGHT
