Secured Transactions Flashcards
Secured interest must be supported by consideration given. Debtor must actually own the rights to the collateral or have possession. Secured interest much be recorded
Secured Transactions
Gets higher priority over others claiming rights to collateral after the perfection takes place Attachment must take place BEFORE perfection
Secured Transactions
By filing a financing statement By possessing the collateral
Secured Transactions
Store sells a consumer good on credit - Store retains security interest A bank finances the purchase of a consumer good - Bank retains security interest
Secured Transactions
If two parties are perfected; then the first one to file wins If neither party is perfected; then the first one to attach wins
Secured Transactions
Creditor holds priority over claims to collateral vs. unperfected security interests Beats perfected security interests filed after lien attachment Exceptions: Purchase money security interest; which has a 10 day grace period to be filed Buyers purchasing in the ordinary course of business are immune from security interests held by merchants
Secured Transactions