Secured Transactions Flashcards
BOCB
- buys goods
- in the ordinary course of business
- for a seller who is in the business of selling goods of that kind
- in good faith
- w/o knowledge that the sale violates the rights of another in the goods
chattel paper
- monetary obligation and
- security interest/lease
accounts
ROP of monetary obligation for property that is sold/licensed/leased/for services rendered
security agreement requirements
RAD
1. Record,
2. Authentication,
3. Description of collateral
Attachment reqs:
- value given by the secured party;
- debtor has rights in the collateral; AND
- debtor has authenticated the security agmt OR the secured party has possession/control of the collateral pursuant to the security agmt
Security Interest in Collateral that becomes an Accession
Security Interest is not lost due to the collateral becoming an accessions
Attachment to proceeds
When collateral is sold/leased/licensed/exchanged, security interest in the collateral automatically attaches to the proceeds
Security Interest in Collateral that becomes Commingled Goods
Security IS lost in the original goods
PMSI
the goods that the debtor acquires with funds from the secured party are used as collateral to secure the loan
Methods of Perfection
- Control over Collateral
- Possession over Collateral
- Filing a financing statement
security agmt
source of the rights and protects the collateral against the debtor
financing agmt
provides notice to 3Ps
deposit accts can be perfected by possession?
No
Debtor’s name change is perfected for __ months before it becomes unperfected
4 months to refile with changed name
When collateral is transferred to a new debtor, how many __ months to refile
12 months/1 year
