3. Perfection of Security Interests

Question 1

What is perfection?

Answer 1

Something the secured party does to put the world on record/constructive notice of their existence

Question 2

What are the three ways to attain perfection?

Answer 2

1. Take possession = automatic perfection
2. PMSI in consumer goods = automatic perfection
3. File notice of security interest = perfection

Question 3

What is the name of the form one files to attain perfection by filing?

Answer 3

UCC-1 Financing Statement

Question 4

How sufficient must the info in the UCC-1 form be?

Answer 4

Sufficient enough to allow someone to make follow up inquiries

Question 5

How sufficient must the info in the UCC-1 form be?

Answer 5

Sufficient enough to allow someone to make follow up inquiries

Question 6

What three things must be in the UCC-1 form?

Answer 6

1. DR’s name and address
2. CR’s name and address
3. Generic description of collateral

Question 7

Where is the UCC-1 form generall filed?

Answer 7

With the secretary of state in DR’s state

Question 8

Where is the UCC-1 form filed when the colalteral is timber/minerals/fixtures?

Answer 8

In the state where the collateral is located

Question 9

What one thing will completely invalidate the filing of the UCC-1 form? How come?

Answer 9

Any error in DR’s name and address

Because it is through the DR’s information that a future CR would discover the security interest, not CR’s