Secured Attaches or Perfects but Transferees have PMSI Inventory and Priority is a Remedy for Foreclosure and Conversion

Question 1

Secured

Answer 1

Secured Interest Collateral

(1) Secured Transactions = WA statute enacting UCC art. 9
(2) security Interest = creditor lending $ w/right to sell/repossess collateral if debtor defaults (SA defines terms)
(3) Collateral = Inventory (sold), equipment (used), consumer goods (personal), farm equip, certain intangibles

Question 2

Attaches

Answer 2

Attachment Agreement After

(1) Attachment = required = rights in collateral + value given + SA
(2) security Agreement = terms + adequately != all != all consumer (51% use) != oral != creditor signed
(3) After acquired clause = after execution = enforceable if comports; floating lien = covers future advances

Question 3

Perfects

Answer 3

Perfection Vehicles Expiration

(1) Perfection = process for notice + protect = generally by filing FS w/ DOL
(2) Vehicles = lien notation on title certificate
(3) Expiration = 5 years w/ continuation w/n 6 months

Question 4

Transferees

Answer 4

Transferees Converted Retail

(1) Transferees = subject to collateral even w/o permission; as well as identifiable cash proceeds of the debtor as long as they can be traced
(2) Converted cash proceeds = unperfected on 21st day unless new filing, unless covered by after acquired
(3) Retail Inventory = in ordinary course of business = free and clear

Question 5

PMSI

Answer 5

PMSI Mere Non

(1) PMSI = lend to purchase + creditor retains repossession right != working capital loans
(2) Mere attachment = perfection for consumer goods + farm equipment < 2.5k
(3) Non-inventory = 20 day grace

Question 6

Inventory

Answer 6

Inventory Consignor Consumer

(1) PMSI Inventory = File + notice before delivery (attachment)
(2) Consigner = place in hand of another, but holds title = treated as PMSI, for consumer goods (get back) or inventory (the latter being subject to the 20 day rule)
(3) Consumer to consumer = free and clear, unless PMSI creditor filed (garage sale)

Question 7

Priority

Answer 7

Priority Super Lost

(1) Priority = perfected over attached = first in time, first in right
(2) Super priority = over regular priority
(3) Lost priority = seriously misleading name change not refiled in 4 months

Question 8

Remedy

Answer 8

Remedy Bankruptcy

(1) Remedy = right of repossession w/ or w/o judicial process; self help =ok != limited privilege of R. trespass but cannot disturb the peace
(2) Bankruptcy = automatic stay

Question 9

Foreclosure

Answer 9

Foreclosure Proceeds

(1) Strict Foreclosure = retain collateral and waive deficiency, sell; retain = notice to debtor/junior; else = reject in 20 days = commercially R. disposition sale = 10 days notice to both
(2) Proceeds = repossession/sale costs, creditor, remaining, then debtor or deficiency judgment

Question 10

Conversion

Answer 10

Conversion Eve

(1) Conversion = intentionally sold, converted, to hinder/defraud
(2) Eve bankruptcy = set aside 90 days for public, 1 year insiders