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Yaeger REG > Mod 29 Secured Transactions > Flashcards

Mod 29 Secured Transactions Flashcards

1
Q

Chattels

A

Personal property

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2
Q

Purchase Money Security Interest (PMSI) Creditor 2

A

1 creditor who advances money or credit to enable a debtor to
Obtain collateral and

2 takes security interest in collateral

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3
Q

After Acquired Property Clause

2) it is used most often with…

A

Creditor takes as collateral property to be acquired by debtor at
Later date

2) used most often with inventory and equipment

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4
Q

Attachment is…

A

Creditor’s rights vs. the debtor only

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5
Q

3 elements of Attachment

A

1 agreement
2 value by creditor
3 debtor must have rights

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6
Q

Attachment elements:

Agreement

A

Must have agreement between creditor and debtor (oral or written)

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7
Q

Attachment elements:

Must have an agreement between the creditor and debtor 2

A

1 written agreement need only be signed by debtor

2 can be oral only if creditor takes possession with debtor’s
agreement (pledge)

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8
Q

Attachment elements:

Value

A

Must have value given by creditor

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9
Q

Attachment elements:

Debtor must have…

A

Debtor must have rights in collateral

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10
Q

There is no attachment until…

A

All 3 elements have occurred

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11
Q

Perfection is…

A

Creditor’s rights vs. subsequent 3rd parties

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12
Q

Creditor is unperfected

A

Creditor is unprotected

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13
Q

Perfection by creditor

A

Taking possession of collateral with debtor’s agreement

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14
Q

Perfection by Creditor taking Possession of the collateral with debtor’s agreement

A

Only way to perfect with negotiable instruments or stocks and
Bonds

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15
Q

Perfection by Filing a Financing Statement:

Gives…

A

Constructive notice to all 3rd parties of the security interest

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16
Q

Perfection by Filing a Financing Statement:

Must contain…3

A

1 names and addresses of parties

2 general description of collateral

3 signature of debtor

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17
Q

Perfection by Filing a Financing Statement:

Filing is the only way to…

A

Perfect accounts receivable

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18
Q

Perfection by attachment is…

A

An automatic but very limited type of perfection

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19
Q

Perfection by Attachment:

Can only occur with…

A

PMSI Creditors in consumer goods

20
Q

Perfection by Attachment:

One who perfects by attachment beats…

A

All other creditors

21
Q

Perfection by Attachment:

One who perfects by attachment loses…

A

Loses collateral to any consumer purchaser from debtor without
Notice of security interest

22
Q

One who perfects by attachment loses collateral to any consumer purchaser from debtor without notice of security interest. How can you protect against this?

A

Can protect against this by filing

23
Q

Usually a perfected creditor beats…

A

A purchaser from debtor

24
Q

2 exceptions when perfected creditor loses to a purchaser from debtor

A

1 one who perfects by attachment loses to purchaser without notice

2 one who buys from a merchant in ordinary course of business
Takes free of all security interests

25
Q

one who buys from a merchant in ordinary course of business

Takes free of all security interests even…

A

If they had notice of the security interest

26
Q

Priority with multiple creditors:

Usually the first creditor to…

A

File or perfect wins (1st in time is 1st in line)

27
Q

Usually the first creditor to file or perfect wins:

2 exceptions

A

1 PMSI Creditor in noninventory collateral

2 PMSI creditor in inventory collateral

28
Q

Usually the first creditor to file or perfect wins: exception

Purchase Money Security Interest (PMSI) Creditor in non inventory collateral…

A

Has priority if they file within 20 days of debtor getting possession

29
Q

Usually the first creditor to file or perfect wins: exception

Purchase Money Security Interest (PMSI) Creditor in inventory collateral…

A

Has priority if before Debtor gets possession they file and give
Written notice to creditors ahead of him

30
Q

Collateral perfected in one state and moved to another state…

A

Remains perfected 4 months after arrival in new state

31
Q

3 remedies of creditor after default

A

1 repossess

2 strict foreclosure

3 sue debtor

32
Q

3 remedies of creditor after default:

Repossess

A

Peacefully repossess the collateral and sell or lease it

33
Q

Peacefully Repossess the collateral and sell or lease it:

Can be sold at…2

A

1 public sale and

2 creditor can bid

34
Q

Peacefully Repossess the collateral and sell or lease it:

Can also be sold at…2

A

1 sold at private sale and

2 creditor usually cannot bid

35
Q

Peacefully Repossess the collateral and sell or lease it:

After sale debtor is…2

A

1 liable for any deficiency and

2 entitled to any surplus

36
Q

Secured Transaction

A

Debt secured by personal property

37
Q

Peacefully Repossess the collateral and sell or lease it:

A good faith purchaser for value at public sale…2

A

Takes free of that interest and all subordinate liens

38
Q

Peacefully Repossess the collateral and sell or lease it:

Debtor can redeem the property by…

A

Paying all secured creditors in full

39
Q

Strict foreclosure define

A

Creditor keeps collateral but must cancel entire debt

40
Q

Strict foreclosure:

If debtor or other creditors object…

A

Within 21 days creditor must sell

41
Q

Strict foreclosure:

If debtor has paid 60% or more of price of consumer goods…

A

Creditor must sell unless debtor waives the right

42
Q

Remedies for creditor after default:

Sue debtor for debt and…

A

Reduce claim to a judgment

43
Q

Sue debtor for debt and reduce claim to judgement

A

Often used if collateral is insufficient to pay debt (called a deficiency judgment)

44
Q

Attachment define

A

Creates the secured transaction

45
Q

Security agreement

A

Written agreement (of attachment)

46
Q

Perfection define

A

Creditor gives notice to all other creditors that he has first rights
To the collateral

Yaeger REG (77 decks)

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