UCC Quiz 3 Flashcards
A9 Exclusions
a. Anything non-consensual is not under A9: artisan lien, judicial lien, statutory lien (except an agricultural lien is under A9)
b. Anything that covers items other than personal property & fixtures
Covered under A9
a. Article 9 governs all consensual security interests in personal property or fixtures created by mutual agreement between the parties
Classification of Collateral 3 categories
Goods = all things moveable when a S.I. attaches
Quasi-Tangible Property = typically paper recording obligation or value
Intangible Property = property having no significant physical form
Classification of Collateral: Goods subcategories
- Consumer Goods = goods that are used or bought for use primary personal, family, or household
- Equipment = goods other than inventory, farm products or consumer goods; catch all term
- Farm Products
- Inventory
Classification of Collateral: quasi-tangible property subcategories
- Instruments = negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation
- Chattel Paper = record(s) that evidence both a monetary obligation & a security interest in specific goods
- Investment Property = a security, security entitlement, securities account, commodity account or K
- Documents = document of title or a receipt
- Letter of Credit Rights = means a right to payment or performance under a letter of credit
Classification of Collateral: Intangible property subcategories
- Accounts = a right to payment of a monetary obligation, whether or not earned by performance
- Commercial Tort Claims
- General intangibles = any personal property Ex = software
- Healthcare
- Payment intangibles = monetary obligation
PMSI Creation
Creation = a creditor provides the credit to buy the collateral being used to secure the debt
PMSI Consumer Goods
Consumer goods automatically become priority
i. Exception = car titles need notation on title
PMSI - How to Achieve Super Priority
PMSIs for everything other than livestock, inventory & consumer goods become super priority if perfected within 20 days of debtor receiving priority
When does perfection expire
expiration = in 5 years but can only refile 6 months before expiration
Multistate - when to re-file based on new debtor/location
a. 4 months to re-file if debtor moves
b. 1 year to re-file if new debtor assumes debt of OG debtor
Choice of law general rules
Typically where the debtor is located
- If registered org = state of registration
- If unregistered org = place of business; if multiple then where chief executive offices are located
- Natural person = principal residence
If collateral has physical form diff from individual location then where the collateral is located will govern priority
Multistate - international issues
If other country follows UCC A9 then they may file there otherwise must file in D.C.
Where to file S.I.
Where debtor is located
1. If registered org = state of registration
2. If unregistered org = place of business; if multiple then where chief executive offices are located
3. Natural person = principal residence
When is consignment under A9
Consignment = a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and
- the merchant:
1.deals in goods of that kind under a name other than the name of the person making delivery;
2.is not an auctioneer; and
3.is not generally known by its creditors to be substantially engaged in selling the goods of others;
- with respect to each delivery, the aggregate value of the goods is $1,000 or more at the time of delivery;
- the goods are not consumer goods immediately before delivery; and
- the transaction does not create a security interest that secures an obligation
+ Consignee has control still to be a true consignment
+ If it does not meet these req then consignee must file a financing statement
