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Bar Exam > Secured Transactions > Flashcards

Secured Transactions Flashcards

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1
Q

Article 9 security interest

A

consensual lien on personal property

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2
Q

Types of personal property (goods)

A
  1. Consumer goods
  2. Farm products
  3. Inventory
    - goods held for sale
    - goods held for lease
    - goods that are rapidly consumed
  4. Equipment (residual category)
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3
Q

Account (definition)

A

Right to payment arising out of one of the transactions w/n article 9

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4
Q

Types of Accounts

A
  1. Sale of goods

2. Rendition of services

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5
Q

Article 9 instrument

A

Article 3 negotiable instrument

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6
Q

Types of Personal Property (non-goods)

A
  1. Accounts
  2. NIs
  3. Chattel Paper
  4. Deposit Accounts
  5. Documents
  6. Investment Property
  7. Commercial Tort Claims (CTCs)
  8. General Intangibles
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7
Q

Chattel Paper

A
  1. Written lease of personal property

2. Documentation generated by a secured transaction

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8
Q

Deposit Accounts (not included)

A

Consumer account when the transaction is for a consumer purpose

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9
Q

CTCs

A
  1. Any tort claim that a business has is a CMT

2. Tort claims by individuals are CMTs if they arise out of the operation of a biz + do not involve PI.

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10
Q

General intangibles

A

Residual category for all non-goods

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11
Q

Attachment (effect)

A

Article 9 event when a creditor acquires a security interest and becomes a secured party.

Attachment creates rights against the debtor

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12
Q

Attachment events (Very Rich Shit)

A
  1. Value given
  2. Debtor has to have rights in the collateral
  3. SOF
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13
Q

Article 9 SOF

A
  1. Debtor must authenticate
  2. Evidences grant of security interest
  3. Describe collateral
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14
Q

Article 9 SOF description

A

*Cannot be super-generic

OK:
“All inventory”
“All equipment”
“All chattel paper”

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15
Q

Description of CTCs

A

Must be somewhat specific (date)

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16
Q

Description of consumer goods

A

Even more specific:
OK:
“All furniture”
“All snowmobiles”

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17
Q

SOF Exception

A

Possession by secured party

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18
Q

After acquired property clauses

A

OK

Exceptions:

  • CMTs
  • Consumer goods must be acquired w/n 10 days of value given
19
Q

Future advance clauses

A

Eliminates the need for multiple security agreements

20
Q

Proceeds (effect)

A

Security interest will automatically attach to identifiable proceeds

21
Q

Proceeds (definition)

A

Anything the debtor acquires as a consequence of the debtor’s rights int he collateral

22
Q

Perfection by Financial Statement

A

Perfects a security interest in all types of collateral except - deposit accounts

23
Q

Correct filing state

A

Where debtor is located regardless of the location of collateral

24
Q

Financial Statement Elements

A
  1. Debtor name
  2. Secured party name
  3. Description of collateral
  4. Authorized by debtor
25
Q

Filing statement duration

A

5 years

26
Q

Perfection by possession

A

Valid but not for:

  • account
  • CTC
  • general intangible
  • deposit account
27
Q

Perfection by control

A

ok for deposit accounts

28
Q

Automatic perfection (def)

A

Perfection upon attachment

29
Q

Purchase-money security interest

A

Applies only to goods

30
Q

How to get a PMSI

A
  • sell goods on credit

- lend an enabling loan

31
Q

Priority: two secured interests, both unperfected

A

1st to attach

32
Q

Priority: two secured interest, one unperfected

A

Perfected security interest

33
Q

Priority: two secured interest, both perfected

A

1st to file or perfect

34
Q

Priority: Secured party vs buyer

A

Presumption goes to secured party

35
Q

Priority: Secured party vs buyer (exceptions)

A
  1. BOCB
  2. Yard Sale
  3. Latest buyer exception
36
Q

BOCB exception

A
  1. Buy goods
  2. From someone in the business of selling the type of goods in question
  3. w/o notice
  4. Seller created the security interest
37
Q

Yard Sale exception

A
  1. consumer goods
  2. sold as consumer goods
  3. W/o notice
  4. Secured interest relies on automatic perfection (didn’t file)
38
Q

Latest buyer exception

A
  • Applies to unperfected security interests

- w/o notice

39
Q

Priority: Secured party vs. judicial lien creditor

A

General rule: perfected SI gets priority

40
Q

Insecurity clause

A

Secured party right to declare default if uneasy about possibility of repayment
- good faith

41
Q

Secured party rights upon default

A

right to possession

42
Q

Self-help repossession no-no’s

A

Cannot:
breach the peace!
go into an enclosure!
continue against debtor objection!

43
Q

Secured party rights upon repossession

A
  1. Sell by public or private sale
  2. Must be commercially reasonable
  3. Must notify debtor

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