Secured Transactions Flashcards
What are goods?
Movable tangible property
What are rights to payment?
Instruments, chattel paper, accounts, payment intangibles
What is attachment?
An arrangement linking a debt to collateral, upon attachment interest becomes enforceable.
Requires value given, the debtor to have rights, and either a security agreement or possession/control
What is required in a security agreement?
Identify collateral, shows inten tof debtor to be bound, and is in a tangible medium
Accessions are?
Goods that are united with another good but are identifiable. The security interest continuous in the accession.
Commingled goods are?
A good that is united but the identity of the good is lost. The security interest transfers to the larger good.
Proceeds are?
Whatever is exchanged for the collateral. The security interest in the collateral attaches to the proceeds automatically.
Perfection can occur by?
Filing, possession/control, automatic perfection, or alternate perfection systems (like for car registration)
Filing a financing statement can perfect all interests except those in?
Deposit accounts, cars, money, and letters of credit
Where must a financing statement be filed to perfect an interest?
For everything except interests in real property, filing is in the central filing office where the DEBTOR is located. This is the state of incorporation for a corporation or the principal residence of individuals.
For real property interests, it is filed in the county where toe property is located.
Financing statements require what information to perfect an interest?
The names of the parties, the description of the collateral and if it is for real property, name of the record owner and describe the property.
What information is non essential to perfect but will cause the financing statement to be refused at the office?
Addresses of the parties and an indication of whether the debtor is an individual or a corporation.
A mistake in a financing statement will only affect perfection if it is?
Seriously misleading.
Financing statements lapse after ___ years but may be continued within ___ months before lapsing.
Five, Six.
A security interest in money can only be perfected by?
Possession