UCC 9 Secured Transactions

Question 1

Perfected security interest

Answer 1

1. Attachment is the process creating a security interest
   - secured party gives value;
   - the debtor has rights in the collateral
   - the debtor has authenticated (signed agreement that sufficiently describes collateral)
2. Perfection gives notice to world
   > filing finance statement
   - automatic PMSI consumer goods

Question 2

Perfection necessary for ?

Answer 2

Priority Purposes

Question 3

Priority Rights

Answer 3

First in time - first in rights

Question 4

Payment

Answer 4

A default occurs when the debtor fails to tender an obligation when due

1. Upon default, a secured party may reduce a claim to judgment, foreclose, or otherwise enforce the claim
2. Collateral = accounts receivable, the security party may notify to make payment to the secured party
3. Notification must be authenticated by the secured party or the debtor and reasonably identify the rights (signed document)

Question 5

Payment directly to debtor after notification

Answer 5

NO - must be to secured party

Question 6

BIOCOB

Answer 6

Buyer not subject to if:

• good faith
• No knowledge
• Ord Course from Biz of Selling same goods

Question 7

BIOCOB - Garage sale Exceptin

Answer 7

• Consumer Goods for personal use
• NO knowledge
• For Value
• • Before Financing statement filed - BUT Consumer goods - doesn’t have to be filed to perfect –so usually not