Themis Essay 892

Question 1

Article 9 of the Uniform Commercial Code governs

Answer 1

security interest in personal property, fixtures, and agricultural liens.

Question 2

Attachment is required for a security interest to be

Answer 2

enforceable against the debtor with respect to the collateral.

Question 3

Three conditions must co-exist for a security interest to attach to the collateral:

Answer 3

(i) the secured party must have given value;
(ii) the debtor must have rights in the collateral; and
(iii) the debtor must have authenticated a security agreement that describes the collateral.

Question 4

Perfection of a security interest is generally necessary for the secured party to

Answer 4

have rights in the collateral that are superior to the rights claimed by third parties in the same collateral.

Question 5

A security interest is perfected upon

Answer 5

attachment of the interest and compliance with one of the methods of perfection.

Question 6

There are four ways a secured party can perfect a security interest:

Answer 6

(i) filing a financing statement;
(ii) possessing the collateral;
(iii) controlling the collateral;
(iv) automatic perfection.

Question 7

A deposit account may be perfected only by

Answer 7

control.

Question 8

Fixtures are perfected by

Answer 8

filing a financing statement.

Question 9

A financing statement must contain:

Answer 9

(i) the debtor’s name;
(ii) the name of the secured party; and
(iii) the collateral covered by the financing statement.

Question 10

An agricultural lien is subject to

Answer 10

Article 9.

Question 11

In Virginia, a financing statement generally must be filed with

Answer 11

the Virginia State Corporation Commission.

Question 12

For a security interest to attach to collateral, there must be

Answer 12

a security agreement authenticated by the debtor to satisfy the Article 9 Statute of Frauds.

Question 13

A security interest in any collateral, except a deposit account, may be perfected by

Answer 13

filing a financing statement.

Question 14

A Purchase Money Security Interest may exist with respect to two types of collateral:

Answer 14

goods (including fixtures) and software.

Question 15

A Purchase Money Security Interest in goods exists when:

Answer 15

a secured party sells goods to the debtor, and the debtor incurs an obligation to pay the secured party all or part of the purchase price.