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FL Bar exam > Secured Transactions > Flashcards

Secured Transactions Flashcards

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1
Q

Consumer goods

A

goods used or bought for personal, family or household purposes

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2
Q

Farm products

A

crops, livestock, umanufactured products and supplies used in farm operations in possession of or used by a farmer

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3
Q

Inventory

A

goods held for sale or lease and goods used in business that are consumed in short order

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4
Q

Equipment

A

Goods that aren’t consumer goods, farm products ,or inventory (e.g. durable goods used in business, paintings on an office wall)

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5
Q

What category is this collateral:
manure sold by debtor’s agricultural supply store

A

Inventory

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6
Q

Tangible Collateral

A

All things movable at the time the security interest attaches, except money

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7
Q

What are the 4 types of tangible collateral under Article 9?

A

consumer goods
equipment
inventory
farm products

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8
Q

What are the 8 types of intangible property?

A

General intangible
Investment property

Accounts
Deposit accounts
Documents
Instruments
Chattel paper
Tort claims (commercial))

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9
Q

Instrument

A

Paper that represents the right to be paid money

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10
Q

Documents

A

papers that represent the right to receive goods

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11
Q

Investment property

A

Stocks, bonds, mutual funds, brokerage accounts

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12
Q

What is required for a secured interest to attach to collateral?

A

(1) Security agreement evidenced by writing or creditor’s possession of collateral
(2) Secured party gives value
(3) Debtor has rights in collateral

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13
Q

When does a PMSI arise?

A

(1) when creditor sells goods to debtor on credit and retains security interest in the goods for all or part of purchase price.
(2) when creditor advances funds used by debtor to purchase collateral and the creditor takes an security interest in that collateral

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14
Q

How may a security interest in equipment be perfected?

A

by filing a financing statement OR
by creditor’s possession of the collateral

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15
Q

What collateral may be perfected by filing?

A

Everything except deposit accounts and money (unless either is claimed as proceeds of other collateral)

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16
Q

What collateral may be perfected by control?

A

ONLY:
investment property
nonconsumer deposit accounts and
electronic chattel paper

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17
Q

Where are most financing statements filed in FL?

A

Florida Secured Transaction Registry

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18
Q

Where must a filing statement for a fixture be filed?

A

With the clerk of the circuit court of the county where the land sits

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19
Q

In addition to usual filing requirements of financing statement, a fixture filing must….

A

Provide a description of the real property to which the fixture is attached

20
Q

Collateral may generally be described by category EXCEPT

A

(1) commercial tort claims
(2) consumer goods and
(3) consumer securities accounts

21
Q

What must secured party do when posessing collateral?

A

Use reasonable care in storing and preserving collateral

22
Q

Risk of loss is on whom when secured party possesses collateral?

A

On debtor to extent of insurance coverage deficiency

23
Q

May a secured party repledge collateral (i.e. use it as collateral for another obligation)?

A

Yes

24
Q

A secured party may hold as additional collaterall….

A

any increase in value of or profits from collateral (except money)

25
Q

What is required information in a financing statement?

A

(1) debtor’s name and address
(2) creditor’s name and address
(3) description of collateral (may be supergeneric)
(4) debtor’s authorization

26
Q

Conflicting security interests perfected by filing

A

Priority goes to first party to either file or perfect

27
Q

Automatic perfection

A

PMSI in consumer goods perfected as soon as it attaches

28
Q

Security interests in noninventory motor vehicles can be perfected only by

A

Notation on vehicle’s certificate of title (even if consumer good)

29
Q

Security interests in nondeposit accounts can be perfected by

A

secured party taking control of account

30
Q

Who has automatic control over a nonconsumer deposit account?

A

The bank where nonconsumer deposit account is maintained

31
Q

How can a secured party (not a bank) get control over a nonconsumer deposit account?

A

(1) putting deposit account in secured party’s name OR
(2) agreeing in authenticated record w debtor and bank that bank will comply with secured party’s orders regarding deposit account.

32
Q

can a secured interest in deposit accounts and money be perfected by filing a financing statement?

A

no (but if deposit account is claimed as proceeds of other collateral, a filed security interest in original collateral automatically perfects a security interest in the proceeds)

33
Q

If a deposit account is claimed as the proceeds of other collateral…

A

a filed security interest in the original collateral automatically perfects a security interest in the proceeds.

34
Q

What security interests may be perfected by possession?

A

security interests in tangible collateral, such as equipment

35
Q

A filing of a financing statement is effective for…

A

5 years from the date of filing

36
Q

continuation statements may be filed..

A

within the last 6 months of the effective period.

37
Q

whose authorization is necessary for a continuation statement?

A

secured party’s only

38
Q

if a secured party violates article 9’s default rules…

A

the value of the collateral is presumed equal to the amount of debt unless proven otherwise

39
Q

A PMSI in goods other than inventory or livestock has priority over conflicting interest in the same goods and proceeds only if…

A

the interest is perfected before or within 20 days after the debtor receives possession of the goods

40
Q

What may a secured party do if the debtor defaults on security agreement?

A

(1) use self help w/o judicial process if she can do so w/o breach of peace
(2) may sell, lease, license collateral by public sale, private sale, or contract
(3) may keep collateral to satisfy debt or
(4) may bring ordinary judicial action for amounts due and levy on collateral

41
Q

Proceeds

A

whatever is received upon the sale, lease, exchange, license, collection or other disposition of collateral or proceeds.

42
Q

Future advances

A

funds secured party has agreed to loan debtor in future

43
Q

What is the effect if a security agreement contains a future advance clause?

A

No new security agreement is needed when future loan is made

44
Q

After acquired property clauses are ineffective as to

A

commercial tort claims

45
Q

After acquired property clauses are effective for consumer goods only if

A

debtor acquires rights in goods within 10 days after creditor gives value

FL Bar exam (18 decks)

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