ST

Question 1

Attachment

Answer 1

gives the creditor rights against the debtor in the collateral. To attach a security interest: (i) either the debtor must authenticate a security agreement granting the creditor a security interest in collateral that describes the collateral or the creditor must take possession or control of the collateral, (ii) the creditor must give value, and (iii) the debtor must have rights in the collateral

Question 2

Perfection

Answer 2

To obtain rights against another claimant to a debtor’s collateral, a secured party must also perfect its security interest. A creditor can perfect its security interest in goods by: (i) filing, in the proper public office, a financing statement that is authorized by the debtor in an authenticated record, or (ii) taking possession

If the collateral is subject to a state statute that provides for perfection of a security interest in motor vehicles by notation of the security interest on the certificate of title. Under Article 9, filing a financing statement is not effective to perfect a security interest in property subject to such a statute

Question 3

PMSI

Answer 3

created when a creditor advances credit or provides the funds needed to make a purchase possible and takes a security interest in the goods purchased.

PMSI in consumer goods is automatically perfected upon attachment.

A PMSI in equipment has priority over conflicting security interests if the PMSI is perfected when the debtor receives possession of the goods (or within 20 days thereafter).

Question 4

Consumer goods

Answer 4

goods that are used or bought primarily for personal, family, or household purposes

Question 5

Equipment

Answer 5

Goods that are not consumer goods, inventory, or farm products

Goods used primarily in a business

Question 6

Original use test

Answer 6

Intended use of collateral governs the collateral’s classification

Question 7

Priority between 2 competing perfected SIs

Answer 7

the first secured party to file or perfect has priority.

Question 8

Accessions

Answer 8

goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.

Article 9’s general priority rules apply to accessions. However, if the accession becomes part of a whole that is subject to a security interest perfected in compliance with the requirements of a certificate-of-title statute, the security interest in the whole has priority over the security interest in the accession.