secured transactions Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Substance over form controls

A

Article 9 governs any transaction regardless of its form if it effectively creates a security interest, that is if it gives the secured party a property interest to secure a debt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Account

A

An account is a right to payment of a monetary obligation (whether or not earned by performance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Deposit Account

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

deposit accounts

A

can only be perfected by control

control:

  1. be the bank that hosts the account
  2. become the customer of the bank w respect to the deposit account
  3. have an authenticated agreement among sp, debtor and bank allowing it to withdraw funds at will.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

inventory

A

goods that are leased by a person as lessor

held for sale or lease

raw materials regularly consumed in the operation of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

equipment

A

goods other than inventory, farm equipment or consumer goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

consumer goods

A

those that are purchased primarily for personal, family or household purchases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

proceeds

A

anything acquired upon the sale, lease or other disposition of collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

chattel paper

A

chattel paper is a document that evidences a monetary obligation and a security interest in specific goods or a lease of specific goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Attachment

A

secured party gives value

debtor has rights in the collateral

security agreement reasonably describing the collateral and authenticated by the debtor; or

collateral in sp’s possession; or

certificated security in registered form and the security certificat has been delivered to the sp pursuant to a security agreement; or

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

requirements for effective financing statement

A

provides the name of the debtor and sp

indicates the collateral; and

filed by a person authorized by the debtor in an authenticated record, security agreement or upon acquisition of the collateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

substantial compliance with financing statements requirements

A

A mistake on a financing statement does not render notice of the security interest ineffective unless the mistake is seriously misleading

Misstating the debtor’s name is seriously misleading unless a search of the name as stated and where the statement is kept would reveal the debtor’s name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PMSI

A

when a creditor extends value to the debtor for the purpose of enabling the debtor to acquire rights in the collateral, a pmsi arises

PMSIs in consumer goods are automatically perfected.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

non consumer goods transaction pmsi perfection

A

In such a transaction, a financing statement filed within 20 days of the debtor receiving delivery of the collateral will ensure the sp’s interest takes priority over conflicting interests which arise between the time of attachment and filing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

where financing statement should be filed

A

non-possessory (where debtor resides)

possessory (where collateral is located)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

si in sale of collateral and identifiable proceeds

A

Generally, an si will continue despite the sale or disposition of collateral unless the sp authorizes disposition free of the si.

A perfected si attaches to identifiable proceeds but will become unperfected on the 21st day unless the proceeds are cash or the equivalent to cash; the si in the proceeds are perfected; or

the original collateral was perfected under the general filing rule, the proceeds are collateral that may be perfected under the general rule