Where more than one party has a stake in same collateral Flashcards
What is an AUPie?
Attached Unperfected Creditor - creditor who creates an enforceable security interest. It attaches but either they never bother to perfect them or try to perfect but mucks it up by filing in wrong place.
What is an AUPie enforceable against?
Against debtor and beats subsequent AUPies as well as GUCs. Loses to PAC’s and LC’s and any bona fide third party.
What is a PAC?
Perfected Attached Creditor - Art9 creditor who succeeds in creating perfection.
Who does a PAC beat in priority?
PAC defeats all except PAC who filed first, PMSI holders and the BIOC
Who has priority when there are two perfected attached creditors? Who filed first?
Article 9 allows for early filing even at onset of loan negotiations. If early filer subsequently attaches they are allowed to benefit from earlier filing. Priority relates to filing date.
What is the situation with a PMSI holder having priority over PAC?
Where collateral is equipment, PMSI holder must file properly within 20 days after possession taken. If collateral is inventory, PMSI holder must file properly before possession taken and notify bank before possession.
What is a NOCie?
Non Ordinary Court Buyer - this is someone who purchases the collateral outside the ordinary stream of commerce. Steven Tyler buys a guitar from his auto mechanic.
What is a BOIC?
Buyer in Ordinary Course - Purchases collateral from merchant’s inventory. Steven Tyler buys from guitar store.
What is a GUC?
General Unsecured Creditor - This is a lender who never bothered to take collateral.
What is a lien creditor?
General unsecured creditor who goes to court to get a judicial lien on the collateral.
