Secured Transactions Flashcards
creating attachment:
Rule: for an Article 9 security interest to be enforceable it must attach, the three requirements of attachment are:
a. Value has been given
b. The debtor must have rights to the collateral;and
c. Either the debtor has** authenticated **a security agreement that provides a description of the collateral or the secured party possesses the collateral pursuant to the security agreement.
how is value given
the DR must get something of value for its giving of the security interest. this is similar as consideration in K-Law
Dr has rights in the collateral
alway ask yourself “what right does the debtor have” in this property. These rights extend to the secured party….look at consignment in MST…the consignee can use the consignor’s goods to secure a loan.
a pledge agreement can be oral and not in writing
in this type of agreement the collateral is in the possession of the creditor.
when is the time of attachment
it is when the events happen to attach, unless the K pospones the time of attachment.
there is not authentication needed if the collateral is in possion of the third party
think the ted william rookie card example. no written K needed.
is the financial statement filed with the state a valid security agreement
no, tpyically it does not have signatures, the collateral description is broad. etc
i need a majority composite documents rule
Rule: An agreement that creates or provides for a security interest, it is well established that no specific words or formalized documents are necessary. There must be some documentation that indicates parties intent to create a security interest.
what is the insurance exemption that is not covered by article 9
article 9 does not apply to the transfer of interest in OR assigment of a claim under an insurance policy, UNLESS the interst represents collateral or it is an assigment of a healh care benefit to a provider. MST At 26.
the Personal injury protection PIP cases that are under massimiano or the car accident where the ins company pays the bank
what for is usually used to assign away healh care “rights to payment”
treament and consent form
how to we perfect a health care assigment at the first level
they are automatically perfected upon attachment.
a health company needs financing, can it assigns its “right to payment” of health care receivable from insurance companies to a creditor as collateral?
yes, this assigment is like a financial transaciton, the asignee/creditor must perfect the SI
a commercial tort claim is
a claim that arose from an individual’s or organization business that does not include personal injury or death. Article 9 Applies
what acount the negligenct destruction to PROCEEDS of collateral, is that tort claim covered under article 9
i need a better example of this…MST At 28
consumer deposit accounts: are excluded from article 9
these accounts are held at a bank of a organization that is in the businsess of banking.
if you provide a bank SI in your personal bank account, this is not a SI under article (.
But if you have a lemonade stand and you provide the bank a SI in that account. it is covered under article 9.
consumer bank accounts are primarily used for personal, family or household expenses.
