fixtures

Question 1

fixture

Answer 1

goods that have become so related to real property that an interest in them arises under real property law. personalty that is attached to real estate with intent to become permanent part of real estate

Question 2

perfection of interest in fixture

Answer 2

fixture filing must be made in office where mortgage on real estate would be filed. fixture filing must meet requirements for financing statement and must identify real estate and name of owner of real estate

Question 3

rights on default for fixtures

Answer 3

when security interest in fixture has priority over all interests in real property, holder of security interest in fixture may, upon default, remove fixture from real property. if debtor doesn’t own property from where collateral is removed, creditor must reimburse owner of property for cost of repair damage to property

Question 4

priority for fixtures - secured party v. subsequent real estate interest

Answer 4

security interest in fixtures has priority over any real estate interest arising subsequent to perfection of interest by fixture filing

Question 5

priority for fixtures - secured party v. prior real estate interest

Answer 5

prior real estate interest that is properly recorded has priority over security interest that subsequently arises. BUT PMSI takes priority over earlier in time realty interest if perfected before goods become fixtures or within 20 days thereafter

construction mortgage takes priority over subsequent PMSI in fixtures, even if security interest is perfected by fixture filing w/in 20 days of affixation

Question 6

when is fixture filing unnecessary

Answer 6

readily removable factory or office machines or equipment that is not primarily used or leased for use in operation of real estate or replacements of domestic appliances which are consumer goods

any method of perfection before they are fixtures entitles party to priority