Security stuff Flashcards
What are “equipment” under the UCC?
Goods that are not inventory, farm products, or consumer goods.
What does UCC Tony Romo– BarrySandersJacko allow?
For parties to agree
2) collateral includes
3) property acquired subsequently
What must a security have to be enforceable?
1) value was given
2) company had rights in generator
3) Company authenticated a security agreement containing a description of the collateral
How does a company authenticate a security agreement containing a description of the collateral?
Signed or electronic equivalent.
What is an example of value in a security instrument?
1) a loan
2) selling things on credit
How does a security interest get perfected?
1) when it has attached
and per UCC either
2.a) filing a financial statement
2).b) secured party taking possession of the collateral
What is the first step to determining priority between two enforceable security interests?
Determine whether the interests are perfected
How is priority determined between competing security interests via general rule?
First to file or perfect
When is first to file/perfect not a superior interest?
If other interest is a purchase-money security interest in collateral other than inventory
When does a purchase money security interest in collateral other than inventory have priority over a competing non-purchase money security interest (even if it was perfected before money security interest?
If purchase-money interest was perfected when purchases received possession of collateral/
OR within 20 days there after.
What makes something a purchase money security interest?
If the obligation
2) that the interest secures
3) is the company’s obligation
4) to pay the purchase price of the collateral
What makes collateral not inventory?
If the collateral is not held for sale or lease
AND
2) does not other wise fall within the definition of inventory
Why was a purchase money security interest perfected no later than time company received possession of power generator?
At time company received power generator
Security interest was enforceable/attached
financing statement had been filed with respect to security interest
What can a transaction demoninated as a lease of goods be classified as?
A lease, or a
2) a sale with a retained security interest
When does a transaction in the form of a lease create a security interest?
If the lessee’s obligation to pay
2) is not subject to termination by the lessee
3) and lessee has option to become owner of goods for no additional consideration upon compliance with lease agreement
