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Texas Bar Exam Feb. 2024 > Secured Transactions > Flashcards

Secured Transactions Flashcards

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1
Q

Governing Law

A

governed by Uniform Commercial Code Article 9

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2
Q

Article 9 Transactions

A
  • contractual transactions that create a security interest in personal property/fixtures
  • agricultural liens explicitly covered by article 9
  • sale of accounts, chattel paper, payment intangibles, or promissory notes
  • consignments
  • security interests under Article 2
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3
Q

Contractual Transactions That Create a Security Interest in Personal Property / Fixtures

A

substance determinative: form or label does not control whether security interest created as long as it meets Article 9 requirements

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4
Q

Transaction

A

usually credit agreement, often loan or sale on credit, that is secured by collateral

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5
Q

Security Interest

A

creditor’s interest in property that secures payment or performance of obligation and gives creditor the right to foreclose if debtor defaults

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6
Q

Sale with Retention of Security Interest

A

mimics a lease but if sale with retention of security interest, lessor must comply with Article 9 to have priority over other creditors.

sale with retention… if:
- lessee does not have right to terminate lease during its term
- lessor does not have right of reversion or something of economic value that must be returned at end of lease term (lease term = or > than economic life of goods, lessee must renew, or lessee can renew or become owner for no additional or nominal consideration)

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7
Q

Personal Property / Fixtures

A

article 9 does not apply to security interests in real estate

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8
Q

Fixtures

A

goods attached to real estate

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9
Q

Sale of Business and Article 9

A

if sale of accounts, chattel papers, payment intangibles, or promissory notes occurs as part of sale of business out of which they arise, not subject to Article 9

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10
Q

Consignments

A

transaction in which a person (consignor) delivers goods to a merchant (consignee) for the purpose of sale.

if sells goods, pays consignor after deducting fee. if cannot sell goods, returns to consignor

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11
Q

Consignments: Security Interest in Consignee’s Inventory

A

if creditor takes a security interest in consignee’s inventory to secure a loan, consignor may use Article 9 rules to get priority over credit.

If consignor does not use Article 9 to get priority, creditor may foreclose on consigned goods if consignee defaults

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12
Q

Consignments: Security Interest in Consignee’s Inventory - Consignor Priority

A

four situations in which consignor has priority over secured creditor’s rights, even if consignor did not comply with Article 9:
- consignee does not deal in goods of the kind that are consigned
- consignee is generally known to be selling the goods of others
- consigned goods are worth less than 1k or
- goods were consumer goods before consignment

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13
Q

Security Interests Under Article 2: Buyer’s Rights

A

if buyer rightfully rejects nonconforming goods, buyer has security interest in buyer’s possession to secure any payments made or expenses incurred

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14
Q

Security Interests Under Article 2: Seller’s Rights

A

if seller reserves title in the goods, once goods are delivered to buyer, reservation limited to the effect of a security interest subject to Article 9

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15
Q

Transactions Outside the Scope of Article 9

A

create a security interest but article 9 rules do not apply:
- landlord’s lien on personal property of tenant to satisfy unpaid rent that was created by state statute or common law
- any lien, other than an agricultural lien, created by statute or other law
- liens on real property, even if created by contract

In these cases, a lien creditor will have priority over a conflicting security interest ONLY IF lien arose prior to perfection of security interest.

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16
Q

Purchase Money Security Interest (PMSI)

A

security interest that is taken by either:
- seller of goods in the goods sold to the debtor on credit OR
- lender who takes an interest in the goods that the loan enabled the debtor to buyer

only PSMIs in consumer goods automatically perfect

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17
Q

Creation of Security Interest

A

Courts will objectively examine substance of transaction to determine if Art. 9 security interest.

DO NOT CONSIDER:
- intent of parties
- form of transaction
- whether title remains with debtor or vests with secured party

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18
Q

Attachment of Security Interest: Requirements

A

security interest attaches to collateral and becomes enforceable when:

  • secured party has given value to the debtor
  • debtor has rights in the collateral or has power to transfer rights in the collateral to secured party
  • either (a) debtor has authenticated a written or electronic security agreement that describes the collateral OR (b) the secured party possesses the collateral pursuant to an oral security agreement
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19
Q

Debtor’s Rights in Collateral: Limited Rights

A

if debtor has limited rights, security interest attaches only to those limited rights

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20
Q

Debtor’s Rights in Collateral: Consignment

A

consignee is deemed to have rights and title to the goods identical to those of the consignor

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21
Q

Debtor’s Rights in Collateral: Prohibition on Transfers

A

agreement to prohibit transfers of debtor’s rights in collateral does not prevent transfer from taking effect.

HOWEVER, debtor’s breach of this provision may constitute default

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22
Q

Authentication of Security Agreement

A

debtor must authenticate BUT secured party does not need to authenticate

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23
Q

Security Agreement: Collateral Description

A

description cannot be supergeneric. It must reasonably identify the collateral UNLESS agreement involves commercial tort claim or consumer goods. In those cases, must identify particular claim or goods

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24
Q

Security Agreement: Composite Document Rule

A

security agreement can be pieced together from multiple documents if those documents, together, satisfy requirements for a formal security agreement

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25
Q

Security Agreement: New Debtor

A

person is bound by a security agreement entered into by another person if either:
- security agreement creates a security interest in a new debtor’s property OR
- new debtor becomes generally obligated for the obligations of the first debtor and acquires or succeeds to all, or substantially all, of the first debtor’s assets

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26
Q

Floating Liens

A

debtor’s rights in the collateral need not exist at the time the security interest is granted.

security interest can attach to:
- after-acquired collateral and
- proceedings from a disposition of collateral

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27
Q

Floating Liens: After-Acquired Collateral

A

security interest can attach to rights a debtor acquires in the future if the agreement so provides.

if collateral is consumer goods, security interest will only attach within 10 days after the secured party gives value

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28
Q

Floating Liens: Proceeds

A

security interest automatically attaches to proceeds of collateral as long as it is traceable to the collateral.

does not need to be stated in agreement

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29
Q

Future Advances

A

security agreement may provided that the present collateral secures future loans or other additional value provided by creditor, even if future advance does not appear to be separately secured

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30
Q

Types of Collateral

A
  • tangible property (goods)
  • tangible property (fixtures)
  • intangible property
  • quasi-tangible property
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31
Q

Tangible Property (Goods)

A

includes tangible items that are movable when security interest attaches. Includes the following (based on debtor’s POV):
- consumer goods: used primarily for personal, family, or household purposes
- farm products: crops, livestock, supplies used in farming operations
- inventory: held for sale or lease and material used or consumed in business
- equipment: all goods that do not fall into one of te above three subcategories

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32
Q

Tangible Property (Fixtures)

A

includes goods that have become so related to real property that an interest in them arises under real property law

retain separate identity and can be detached from the real property

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33
Q

Intangible Property

A
  • accounts: right to receive payment of a monetary obligation
  • deposit accounts: accounts the debtor maintains with a bank
  • general intangibles: any personal property other than accounts, chattel papers, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, and oil, gas, or other minerals before extractions
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34
Q

Quasi-Tangible Property

A

includes intangible right that historically was represented by piece of paper such as:
- negotiable instruments (promissory notes)
- chattel paper (record that represents monetary obligation and security interest in or lease of specific goods)
- investment property (stocks and bonds)

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35
Q

Duties of Secured Party

A
  • duty of reasonable care in custody and preservation of collateral (for chattel paper or instrument, includes taking necessary steps to preserve rights against prior parties)
  • duty to keep collateral in its possession identifiable (but can commingle fungible collateral)
  • duty to relinquish possession and control of collateral within 10 days of receipt of debtor’s authenticated demand if (a) no outstanding secured obligation and (b) secured party not committed to make advances, incur obligations, or give value
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36
Q

Rights of Secured Party

A
  • right to charge for reasonable expenses incurred in custody of collateral and secure additional debt with collateral
  • right to recover any deficiency in effective insurance coverage (debtor bears risk of accidental loss/damage)
  • right to use or operate the collateral to preserve it or its value as permitted by a court order or, if collateral is not consumer goods, as agreed by debtor
  • right to hold as additional security any proceeds except money or funds received from collateral (which must be applied to reduce secured obligation or remitted to debtor)
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37
Q

Rights of Debtor

A
  • right to receive an accounting of unpaid obligation and a list of collateral securing it within 14 days of secured party’s receipt of debtor’s authenticated request
  • right to receive approval or correction of debtor’s statement of unpaid obligations and list of collateral securing the obligations within 14 days of the secured party’s receipt of debtor’s authenticated request
  • right to demand, in authenticated record, that secured party notify any account debtor who has been informed of assignment of debt that it has been released from further obligation to secured party if (a) no outstanding secured obligations and (b) secured party not committed to make advances, incur obligations, or give value
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38
Q

Perfection: Definition

A
  • security interest has attached AND
  • secured party has taken necessary steps to give 3P notice of security interest

Not required for secured creditor to proceed against debtor but may be necessary for priority

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39
Q

Perfection: Choice of law

A

any choice of law stated in security agreement is irrelevant

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40
Q

Perfection by Filing

A

security interest has attached has been perfected by filing if three requirements met:
- filing authorized by debtor in authenticated record (electronic or written)
- financing statement properly filed (communicated to proper filing office using authorized method along with tender of filing fee OR accepted by filing office)
- financing statement sufficient (includes (a) debtor’s name, (b) secured party’s name, and (c) indication of collateral

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41
Q

Filing Financing Statement

A

if filing office refuses to accept, filing effective against anyone except purchaser of collateral for value who reasonably relied on absence of record from files

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42
Q

Filing Financing Statement: Appropriate Places

A

must be filed in state where debtor located. In most states, filed with secretary of state.

debtor-individual: located in state of person’s principal residence

debtor-registered organization (corporation, LLC, LLP): located in state in which registered

debtor-organization (partnership): located in state where chief executive office located

43
Q

Sufficient Financing Statement: Debtor’s Name

A

Debtor-individual: name on unexpired driver’s license OR if no license, name or legal first and last name

Debtor-Registered Organization (Corp., LLC, LLC): name organization used when registered in state

Debtor-Organization (Partnership): organization’s name, or if no name, names of partners, members, or associates

44
Q

Sufficient Financing Statement: Secured Party’s Name

A

sufficient as long as secured party can be found to be contacted about security interest

45
Q

Sufficient Financing Statement: Indication of Collateral

A

can be broader than description in security agreement. Supergeneric description is acceptable.

46
Q

Perfection: Proceeds of Collateral

A

proceeds include whatever is obtained on sale, lease, license, exchange, or other disposition of collateral.

creditor’s security interest continues in proceeds and, if interest was perfected, perfection will also continue in proceeds for 20 days.

continues beyond 20 days if one of the following satisfied:
- perfection of original collateral was by filing in the same officer where creditor could perfect proceeds
- proceeds are cash proceeds
- security interest in proceeds is otherwise perfected or creditor takes necessary steps to perfect proceeds

47
Q

Term of Financing Statement

A

properly filed financing statement is effective for five years and can be continued by filing a continuation statement within the last six months of the five-year period

48
Q

Lapse of Financing Statement

A

if no continuation statement filed, filed financing statement ceases to be effective and security interests perfected by it are deemed to never have been perfected against purchaser of collateral for value UNLESS perfected by other means

49
Q

Termination Statement

A

if collateral is consumer goods and debtor satisfied debt obligation, secured party must terminate financing statement by filing a termination statement in the same place the OG financing statement was filed. With any other collateral, secured party must terminate financing statement only on demand by debtor

50
Q

Other Methods of Perfection

A
  • taking possession of collateral
  • by a control agreement (between broker or bank, creditor, and debtor where securities intermediary grants control over pledged securities to creditor).
  • indicating the security on the title (if goods subject to certificate of title. BUT must perfect by filing if goods are inventory in hands of debtor)
  • automatic perfection on attachment (only applies to certain security interests)
51
Q

Perfection by Control Agreement: Deposit Accounts

A

control is only method of perfection allowed for deposit accounts.

creditor can perfect by becoming party to account

52
Q

Automatic Perfection on Attachment

A
  • PMSIs in consumer hands in hands of debtor (collateral subject to certification of title, inventory, or equipment is not automatically perfected)
  • assignment of accounts or payment intangibles that does not transfer signficant part of assignor’s outstanding accounts or payment intangibles
  • sale of payment intangible
  • sale of promissory note
53
Q

Priorities: General Creditor v. Secured Party

A

secured creditor has priority over general creditor

54
Q

General Creditor

A

creditors with claim but no lien or secured interest in debtor’s property (such as credit card companies).

No Art. 9 protection for general creditors

55
Q

Priority: Secured Party v. Secured Party

A

1) perfected security interests have prio over unperfected
2) if neither perfected, first to attach has priority
3) if both perfected, security interest that was first in time of filing or perfection has priority (assuming no lapse)

56
Q

Priority: Future Advances

A

if security interest covers advance, perfection dates from time advance made.

timing of advance does not impact priorities among conflicting security interest - FIRST TO FILE OR PERFECT RULE GOVERNS

57
Q

Priority: Proceeds

A

secured creditor with prio in collateral will generally have prio in proceeds of collateral

58
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Superpriority

A

Superpriority: PMSIs have priority over earlier filed security interests if:
- security interest is in goods other than inventory and livestock and was perfected within 20 days after debtor received possession of collateral OR
- security interest is in livestock / inventory, was perfected when debtor received possession of collateral, and secured party sent notice before debtor received possession of collateral to all other secured parties with security interest

Notice: good for five years for inventory but only six months for livestock

Priority extends to identifiable cash proceeds of inventory received on or before delivery of inventory to buyer if:
- security interest perfected when debtor receives possession of inventory and
- secured party sends an authenticated notification to holder of conflicting security interest

59
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Consignor of Goods

A

PMSI in inventory subject to same perfection and priority rules as security interest in inventory or livestock as discussed above

60
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Seller PMSIs

A

if multiple creditors hold perfected PMSI, seller’s PMSI takes prio over PMSI of enabling lender

61
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Deposit Accounts

A

security interest held by secured party having control of deposit account has prio over conflicting security interest held by secured party that does not have control

62
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Deposit Accounts with Banks

A

security interest held by bank with which deposit account is maintained has prio over conflicting security interest held by another secured party UNLESS secured party becomes bank’s customer with respect to deposit account

63
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Investment Property or Letter of Credit

A

security interest in investment property or letter of credit that is perfected by control has prio over security interests perfected by other means

64
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Instruments and Chattel Paper

A

security interest perfected by possession in instruments or tangible chattel paper take prio over security interest perfected by filing if creditor takes:
- possession for value
- in good faith AND
- without knowledge that creditor violating the other party’s security interest

Also applies to buyers of instruments or tangible chattel paper

65
Q

Exceptions to First-to-File-or-Perfect Rule for Secured Creditors: Subordinates

A

secured creditors are free to enter into a contract where they agree that party entitled to priority will subordinate its claim to another creditor’s claims

66
Q

Lien Creditor

A

party who has a judgment against creditor

67
Q

Priority: Lien Creditor v. Secured Party

A
  • if secured party’s interest unperfected at time of levy, lien creditor has priority. BUT if secured party has PMSI, secured party has 20 days to file from date debtor receives delivery of collateral.
  • if secured party’s security interest is perfected at time of levy, secured party has priority.
  • secured party has priority if its security interest secures in advance and
  • advance was made within 45 days after person becomes a lien creditor OR
  • advance was made without knowledge of lien
68
Q

Priority: Creditor with Lien Arising by Operation of Law v. Secured Party

A

if lien arises by operation of law, priority over security interest unless statute creating interest provides otherwise.

69
Q

Lien Arising by Operation of Law

A

lien other than security interest that
- secures payment for services or materials furnished with respect to goods
- created by statute
- dependent on possession of goods

70
Q

Priority: Buyer of Goods v. Secured Party

A

generally, security interest remains attached and enforceable when debtor transfers collateral unless creditor authorized disposition free of security interest.

EXCEPTIONS: buyer takes free of security interest if
- security interest unperfected and buyer takes goods without actual knowledge of security interest
- buyer is buyer in ordinary course of business
- buyer is purchaser who bought the goods from a buyer in the ordinary course of business
- goods secure advances made after earlier of (a) the time the secured party learns of the buyer’s purchase or (b) 25 days after purchase
- yard-sale exception applies

71
Q

Buyer in the Ordinary Course of Business

A

buyer of goods from the seller’s inventory

72
Q

Yard-Sale Exception

A
  • buyer is a consumer
  • goods are consumer goods in the hands of the seller
  • security interest was not perfected by filing
  • buyer does not have knowledge of security interest AND
  • buyer purchased goods for value
73
Q

Priority: Real Estate Encumbrance/Purchaser v. Secured Party with Security Interest in Fixture

A

real estate encumbrance / purchaser has priority in fixtures over secured party’s interest UNLESS
- real estate … consented to security interest
- before real estate … recorded, (a) security interest perfected by a fixture filing that (b) includes same info required for a financing statement and (c) identifies the real property
- after real estate … interest recorded, (a) security interest was a PMSI and (b) was perfected by fixture filing within 20 days after goods became fixtures
- conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by Article 9

74
Q

Construction Mortgages

A

secures obligation incurred for construction of an improvement on land, including acquisition cost of land

have priority over security interest in fixtures if:
- mortgage is recorded before goods became fixtures and
- goods became fixtures before completion of construction

75
Q

Refinancing

A

mortgage given to refinance a construction mortgage has same priority as a construction mortgage

76
Q

Accessions

A

goods that are firmly attached to other goods (like tires attached to car)

generally same priority rules BUT accessions to titled goods lose priority to a perfected security interest in titled goods

77
Q

Commingled Goods

A

goods that are physically united with other goods in such a manner that identity lost in a product or mass

if collateral becomes commingled goods, security interest attaches to resulting product or mass

if security interest was perfected before collateral became commingled goods, resulting security interest in product or mass is perfected

78
Q

Priority When Multiple Security Interests Attached to Product or Mass

A

1) security interests that were perfected in collateral before it became commingled goods have priority over security interests that were unperfected at that time

2) if more than one security interest perfected in collateral before it became commingled goods, security interests rank equally in proportion to value of collateral at time it became commingled goods

79
Q

Assignment: Perfection

A

if security interest perfected at time of assignment, interest remains perfected

80
Q

Assignment: Continuation

A

transferee need not amend original financing statement or file continuation statement until original financing statement would have lapsed

81
Q

Assignment: Priority

A

transferee has same priority in collateral as transferor

82
Q

Assignment: Defenses

A

transferees are subject to any defense the debtor has against original creditor unless
- collateral is account, chattel paper, or general tangible
- debtor agreed not to assert defenses against assignees
- assignee took assignment in good faith without notice of any claim or defense against collateral and
- assignment took assignment for value

83
Q

Assignment: Promissory Notes

A

transferees of promissory notes have protections comparable to those afforded holders in due course

84
Q

Assignment: Prohibitions

A

term in contract between debtor and account debtor that prohibits assignment of account is not effective against secured party

85
Q

Default: Attachment and Perfection

A

if security interest properly attached, secured creditor can pursue a remedy upon debtor’s default

perfection not necessary for secured party to pursue remedy when debtor is in default

86
Q

Default: Secured Party’s Rights and Remedies

A
  • can repossess tangible collateral goods without judicial process / state involvement as long as creditor does not breach the peace
  • if want to recover intangible collateral, may notify account debtors to pay secured party. modifications of account made in good faith between account debtor and secured party are effective against debtor
  • secured party may remove fixtures in which it has security interest if (a) has priority over encumbrances of real property and (b) secured party reimburses the owner or encumbrancer for any damage caused by removal
  • may render equipment unusable and dispose of collateral on debtor’s premises
87
Q

Account Debtors

A

parties who owe debtor money

88
Q

Disposition of Collateral

A

upon repossession of collateral, secured party can sell or dispose of it if:
- give debtor reasonable notice before disposing of collateral
- every aspect of disposition must be commercially reasonable, including method, manner, time, and place
- secured party must properly apply proceeds of collection

89
Q

Disposition of Collateral: Reasonable Notice

A

must be sent within a reasonable time before disposition. nonconsumer transactions have a safe harbor of 10 days before disposition

Notice should describe:
- debtor and creditor
- collateral
- method of disposition
- time and place of public disposition or date after which private disposition will take place
- debtor’s right to an accounting of unpaid indebtedness and
- if consumer transaction, debtor’s liability for any deficiency and contact info from which debtor can learn amount due to redeem collateral and request additional info

must be sent to debtor and secondary obligor. if non consumer goods, must also notify:
- persons from whom secured party received authenticated notification of claim of interest in collateral
- secured parties that, 10 days prior to notification date, held perfected security interest in collateral

90
Q

Disposition of Collateral: Reasonable Notice Exceptions

A

notice not required if collateral:
- is perishable
- threatens to decline speedily in value or
- is of a type customarily sold on a recognized market

91
Q

Disposition of Collateral: Commercially Reasonable

A

must be made:
- in usual manner on any recognized market
- at the price current in any recognized market at the time of the disposition OR
- otherwise in conformity with reasonable commercial practices among dealers in the type of property that was subject of disposition

if debtor challenges, secured party must prove sale was commercially reasonable and that proper notice of the sale was given

92
Q

Disposition of Collateral: Proceeds of Collection

A

Order:
- expenses of collection and enforcement
- reasonable attorney’s fees if provided by agreement
- satisfaction of obligation to secured party
- satisfaction of subordinate security interests and liens of which the secured party has notice

sale made in good faith discharges junior security interests but not senior security interests

if surplus (and not sale of accounts, chattel paper, payment intangibles, or promissory notes), must pay any surplus to debtor. If deficient (same exceptions), can recover deficiency from debtor.

93
Q

Disposition of Collateral: Proceeds of Collection - Related Transferee

A

if transferee is a person related to secured party or a secondary obligor AND amount of proceeds is significantly below range that disposition to non-related party would have brought, surplus or deficiency will be calculated based on amount that would have been realized in disposition

94
Q

Disposition of Collateral: Proceeds of Collection - Consumer Goods

A

secured party must send explanation of calculation to debtor or consumer obligor before or when secured party accounts to debtor and pays any surplus or first makes written demand on consumer obligor for payment of deficiency

if debtor or consumer requests explanation, secured party must send explanation or waiver of secured party’s right to a deficiency within 14 days after receipt of request.

95
Q

Retention of Collateral: Strict Foreclosure

A

secured party may offer to retain collateral in full or partial satisfaction of obligation

96
Q

Full Satisfaction

A
  • debtor consents in an authenticated record after default OR
  • secured party sends debtor a proposal and receives no objection within 20 days.

secured party must also send proposal to:
- any person from whom the secured party has received an authenticated notification of a claim of an interest in the collateral AND
- any other secured party or lien holder that held a security interest in or lien on the collateral perfected by filing or by compliance with a statute, regulation, or treaty

97
Q

Partial Satisfaction

A

in non consumer transaction, debtor must consent to partial satisfaction in an authenticated record

in consumer transaction, no partial satisfaction

98
Q

Mandatory Disposition of Consumer Goods

A

secured party may not retain consumer goods in satisfaction of debt and must dispose of collateral within 90 days after taking possession if:
- for a PMSI, when 60% of cash price paid OR
- for non-PMSI, when 60% of principal amount of obligation secured has been paid

99
Q

Debtor’s Rights and Remedies

A

if secured party forecloses, debtor has four rights:
- redemption
- injunction and damages
- protection against creditor’s claim for deficiency
- common law

100
Q

Debtor’s Rights and Remedies: Redemption

A

may redeem collateral by
- fulfilling all obligations secured by collateral and
- paying reasonable expenses and attorney’s fees as provided in security agreement.

can exercise right before secured party has
- collected collateral
- disposed of collateral or entered into contract for disposition or
- accepted collateral in full or partial satisfaction of obligation it secures

in non consumer-goods transaction, debtor or secondary obligor can waive right by agreement that is entered into and authenticated AFTER default

101
Q

Debtor’s Rights and Remedies: Injunction and Damages

A

if secured party does not comply with Art. 9, debtor can get order restraining collection, enforcement, or disposition.

can also recover damages provided in Art. 9 or by law

102
Q

Debtor’s Rights and Remedies: Protection Against Creditor’s Claim for Deficiency

A

if secured party does not prove disposition commercially reasonable,
- for a non consumer transaction, rebuttable presumption that collateral equal in value to debt amount so secured party cannot recover deficiency
- for consumer transaction, appropriate remedy is left to individual state court. some apply rebuttable presumption rule and others ban noncomplying party from recovering deficiency

103
Q

Debtor’s Rights and Remedies: Common Law

A

trespass, conversion

Texas Bar Exam Feb. 2024 (16 decks)

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