Themis Essay 893 Flashcards

1
Q

A security interest is enforceable if

A

it has been attached to the collateral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

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

A

(i) the secured party must give value (e.g., providing a loan); (ii) the debtor must have rights in the collateral; and (iii) the debtor must have authenticated a security agreement that describes the collateral, or the secured party must have possession or control of the collateral pursuant to the security agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A security interest may apply to the collateral the debtor owns at the time

A

the security interest is granted and also to collateral the debtor acquires in the future.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

No new security agreement is necessary when the collateral is acquired later if

A

the original security agreement provides that it applies to after-acquired collateral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Equipment consists of

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

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

A

(i) filing a financing statement; (ii) possession of the collateral; (iii) control over the collateral; and (iv) automatic perfection.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Article 9 sets out rules governing the

A

priorities of conflicting interests in collateral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Unlike in bankruptcy, which provides a pro rata share to all creditors, Article 9

A

prioritizes the claims and pays them in order.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Where there are two or more perfected secured parties with rights in the same collateral,

A

the first to file or perfect has priority.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A Purchase Money Security Interest (PMSI) is a special type of security interest that may be accorded special rules with respect to two types of collateral:

A

(i) goods, including fixtures, and (ii) software.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A PMSI exists in goods that:

A

(i) a secured party gave value (e.g., made a loan) to the debtor to enable the debtor to acquire rights in or use the goods, and the value given was so used; and (ii) a secured party sold the goods to the debtor, and the debtor incurs an obligation to pay the secured party all or part of the purchase price (i.e., a sale of goods on credit).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A PMSI in goods other than inventory or livestock prevails over all the other security interests in the collateral, even if they were previously perfected, if

A

the secured party perfects before or within 20 days after the debtor receives possession of the collateral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Knowledge by the PMSI secured party of a conflicting prior security interest does not

A

prevent the priority of the PMSI over the earlier perfected security interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A general creditor is one who has a claim, including a judgment, but who

A

has no lien or security interest with respect to the property in question (i.e., the collateral).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A general creditor has no

A

interest to assert under Article 9, and therefore no claim to any particular property owned by the debtor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A secured party will always prevail over

A

a general creditor with respect to the debtor’s collateral.