Secured Transactions Flashcards
Any retention or reservation of title in goods is limited in effect to . . .
The reservation of the security interest
Stuff affixed to the property
Fixture
What is a security interest?
A consensual lien in the property, giving the creditor the right to obtain the property as collateral in the event of default
What two requirements must be met for a debtor to have right to the property in default
Must be attached and perfected
Attachment
Value given
Debtor has rights in collateral or power to transfer rights to secured party
Either a i) security agreement, ii). Possession, or iii) control
Perfection
Either by filing a financing statement or by possession
Where multiple parties have an interest, who gets it
The first to file and perfect
What happens if you file but have not perfected
Filing allows you to hold your place in line. When you perfect, it will relate back to time of filing and not date of perfection. Still have to perfect
It is ok for a collateral description to be generic in a
It is not ok for the collateral description to be generic in
Financing statement
Security agreement
What does the financing statement need
Correct name of debtor, creditor, and a description of the collateral. May be generic
Consumer goods and perfection
Consumer goods are automatically perfected upon attachment
Purchase Money Collateral
Goods or services that secure purchase money obligation with respect to collateral
Perfection by possession is destroyed if
You give it away
The obligation of obligation as part of collateral or for value given to debtor to acquire use of collateral
Purchase money obligation
Perfected v. Unperfected
A perfected interest will ALWAYS trumpet an unperfected interest
