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TX Essays (M. Walker) > Secured Transactions > Flashcards

Secured Transactions Flashcards

1
Q

Preamble

A

TX variety of UCC 9 governs security interest in collateral, including personal property, fixtures, agricultural liens, and certain intangibles. The law of secured transactions protects debtors when the two have ongoing mutual financial responsibilities.

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2
Q

How do you Accomplish Perfection

A
  1. possession
  2. control
  3. filing
  4. mere attachment
  5. title certificate
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3
Q

Tangible Collateral Categories

A
  1. inventory
  2. equipment
  3. consumer goods
  4. farm products
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4
Q

Attachment Req

A
  1. SA
  2. debtor has rights in collateral
  3. creditor gives value
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5
Q

Purchase Money Security Interest (PMSI)

A
  1. creditors who have PMSI are afforded special right to perfect by mere attachment for consumer goods
  2. creditors are given a 20 day grace period to file for non-inventory collateral
  3. date then relates back to attachment date
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6
Q

Types of Collateral

A
  1. goods
  2. intangibles and semi-intangibles
  3. proceeds
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7
Q

When Possession Qualifies as Perfection

A
  1. all classes of collateral except
  2. general intangibles
  3. accounts
  4. non-consumer deposit accounts
  5. non-negotiable docs
  6. e-chattel paper
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8
Q

Who has Priority (Unperfected v. Unperfected)

A

1st to attach

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9
Q

Who has Priority (Perfected v. Unperfected)

A

Perfected

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10
Q

Who has Priority (Perfected v. Perfected)

A

1st to file or perfect

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11
Q

Secured Parties that have Control

A
  1. SP w/ control have priority

2. more than one controls, then first to acquire control

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12
Q

Factors Considered when Determining Reasonableness of Repossession Sale

A
  1. effort to maintain best price
  2. sufficiency of advertising
  3. cleaning or repairs needed
  4. time and please convenience,
  5. whether public
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13
Q

List Intangible & Semi-Intangible Collateral

A
  1. instruments
  2. documents
  3. chattel paper
  4. accounts
  5. deposit accounts
  6. investment property
  7. commercial tort claims
  8. general intangibles
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14
Q

Way Security Interest Created (Attachment)

A
  1. value given to secured party
  2. contract + reasonable description of collateral/property
  3. debtor must have rights in collateral
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15
Q

Way Perfection Occurs

A
  1. attachment + act of perfection
  2. filing financing statement
  3. taking possession
  4. taking control
  5. automatic perfection
  6. temporary perfection
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16
Q

Unperfected vs. Judicial Lien Creditor (Winner)

A

who becomes JLC before other party perfects wins

17
Q

Perfected vs. JLC

A

first in time, first in right

18
Q

Hierarchy of Collateral Interest

A
  1. BIOC, HIDCs, and like (prevail over)
  2. PMSI holders w/ superiority (prevail over)
  3. perfected secured creditor:
    perf vs. perf: 1st to file or perfect
    lien creditors:
    perf vs. LC: 1st to perf SI or attach lien (prevail over)
  4. unperf secured cred: 1st to attach wins (prevail over)
  5. debtor and general unsecured creditors
19
Q

How is a SI Created

A
  1. value
  2. contract
  3. rights
20
Q

When Default on SA - Rights Creditor Has

A
  1. repossess prop
  2. w/out breach of peace
  3. w/out any specific process
  4. giving notice
  5. or judicial process
  6. can sell property at pub/private sale
  7. sure to collect deficiency
21
Q

When Control is Effective Perfection

A
  1. non-consumer deposit accounts
  2. e-chattel paper
  3. investment property
22
Q

When Perfection is Automatic

A
  1. PMSI
  2. small scale assignments of accounts
  3. sales of payment intangibles and promissory notes
  4. beneficial interest in dependents estate
  5. certain investment property
23
Q

Unperfected Secured Party vs. Buyer/Lessee

A
  1. unperfected party will lose if B takes w/out knowledge of SI
  2. gives value
  3. receives delivery
  4. exception SMSI grace period
24
Q

Perfected Secured Party vs. Buyer/Lessee

A
  1. perfected party will win

2. exception BIOC

25
Q

When Secured Party Fails to Comply w/ Default Code Req

A
  1. liable for actual damages
  2. minimum 10% cash price of goods + amount equal to all interest charges be paid over life of loan (consumer)
  3. loss default judgment remedy
26
Q

When Financing Statement be Removed

A
  1. underlying obligation extinguished
  2. w/in 20 days of notice or 1 mo of satisfaction
  3. debtors request (non consumer)
27
Q

4 Types of Tangible Collateral

A
  1. consumer goods
  2. equipment
  3. inventory
  4. farm products
28
Q

Contents of Financing Statement

A
  1. filed w/ SOS
  2. debtors name and addy
  3. creditors name and addy
  4. indication of collateral
  5. description of real property

TX Essays (M. Walker) (12 decks)

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