Ucc Article 9 Flashcards
Steps to make an security interest enforceable are as follows
Value given
Secured party receives security agreement
Describes collateral authenticated by the debtor
Debtor has rights in the collateral
Under the secured transactions article of the UCC the security agreement that does not need to be in writing to be enforceable is
The collateral in possession of the secured party
A security interest does not attach until the goods
Have been shipped
An event that will prevent a security interest from attaching is
Failure of the debtor to have rights in the collateral
Until there is a debt obligation
Possession of the collateral by the creditor
Debtor have interest in the property
No security interest has attached
The purchase of money security for equipment requires
Filing for perfection
A security interest can be automatically perfected if the value is given to purchase money for
Consumer goods
Filing perfection is required for
Retailers and wholesales
The following item that can be excluded from a financing statement is
The amount of the obligation secured
To be automatically perfected the collateral must be for
Consumer goods (personal family or household)
A purchase money security interest advances value to
Enable the debtor to purchase the collateral
When someone gets to keep an item the buyer is free from any
Security interest
Perfecting a security interest means the creditor has priority over other
Third parties unless they met conditions of a purchase money security interest
Order of secured interest priority is
Purchased money interest
First security interest to b perfected
A buyers is not protected from a secured parties interest unless the seller is on it’s
Regular course of business
