sec trans

Question 1

when can a creditor repossess

Answer 1

when debtor defaults on a secured transaction

if they security interest in collateral (attaches)

Question 2

can a security party use self-help?

Answer 2

yes only if it can be done without a breach of the peace

Question 3

right to redeem

Answer 3

the debtor has the right to redeem after default

Question 4

right to redeem waiver

Answer 4

can only be done after a default

Question 5

damages

Answer 5

secured party will be liable to debtor for damages caused by failure to follow article 9 rules

Question 6

lease acts like security

Answer 6

governed by article nine as a security interest

look at economic realities of the transaction

Question 7

lease transaction as security interest

Answer 7

i. rental obligation not terminable by lessee and

ii. at end lesee has option to purchase

Question 8

on sale of repossessed the proceeds go to:

Answer 8

i. expenses of repossession of and sale
ii. satisfy debt foreclosed
iii. remaining funds go to junior interests

Question 9

selling the collateral after default

Answer 9

all subordinate security interests in the oclalteral are discharged UNLESS purchaser acted in bad faith

Question 10

two perfected

Answer 10

first to file or perfect

security interest cannot be perfected before al requirements for attachment are satisfied, but if filed first still gets priority

Question 11

small scale assignment of accounts

Answer 11

automatically perfected under article nine