attachment and perfection

Question 1

3 requirements for attachment

Answer 1

1. Form of the security agreement
   a. A record AND an intent to create a security interest
   b. Authenticated by the debtor
   c. A description of the collateral which must “reasonably identify the collateral.”
   If this element is not met, the creditor must take possession or control of the collateral
2. Secured party must have given value
3. Debtor must have rights in the collateral

Question 2

5 methods of perfection

Answer 2

1. Automatic perfection (PMSI for consumer goods)
2. Possession of collateral by secured party
3. Perfection by control (security interests in nonconsumer deposit accounts CAN ONLY BE PERFECTED by control)
4. Notation of lien on certificate of title (cars/trucks)
5. Filing a financing statement (form UCC-1)

Question 3

3 methods of perfection by control for nonconsumer bank accounts

Answer 3

1. Bank has control over the deposit account
2. Putting the deposit account in the secured party’s name
3. Agreeing in an authenticated record w/t eh debtor and the bank that the bank will follow the secured party’s orders w/o further consent by the debtor

Question 4

Where to file financing statement (UCC1)

Answer 4

1. Secretary of State’s office
2. with county recorder if real prop involved
3. if multiple states, then
   a. Debtor/principal residence
   b. organization/where organized
   c. partnership/chief executive office