Secured Transactions Word Association

Question 1

Attachment

Answer 1

C.A.R

Question 2

Multiple Creditors

Answer 2

When two conflicting creditors both have perfected a security interest in the same collateral, whichever party was either first to perfect or first to file has priority.

Question 3

Highly Tested: Perfection

Answer 3

When two secured parties have a security interest in the same collateral, the first to file or perfect has priority. If not party perfects, then the first to attach has priority.

Question 4

Security Interest may attached to three types of PIG Categories

Answer 4

P: Commercial Paper
I: Intangible Property
G: Goods

Question 5

Goods

Answer 5

Five mutually exclusive categories: FIFE C

F: Fixtures
I: Inventory
F: Farm Products
E: Equipment

C: Consumer Goods

Question 6

Fixture filing will not have priority over a MOB

Answer 6

M: an existing mortgage on the reality
O: an owner of the reality (when Debtor is tenant)
B: A subsequent bona fide purchaser of reality.

if filed in the state’s central office. Must be filed in county office

Question 7

PMSI Arises when

Answer 7

1) loan proceeds are used by the debtor to buy secured chattel
2) the seller sells goods to a buyer and the buyer gives the seller a security interest in those goods

Question 8

OCB Buyer

Answer 8

A buyer who buys in the OCB is a person who buys from a seller who buys from a person, in good faith, from a seller who is in the business of selling those goods. The buyer will take free of the security interest, even if the SI was perfected and the buyer knew of the security interest.