Perfection by filing Flashcards
All Collateral except _____ can be perfected by filing
Deposit Accounts
Money
Letters of Credit
Collateral subject to certificate of title laws
A financing statement is filed in
State secretary’s office where the debtor is located (The Virginia State Corporation Commission)
A Corporation is located where ?
in its state of incorporation
Individuals are located where ?
State of principal place of residence
A business that is not a registered org is located where ?
Were its chief executive office is located
What is required to be on a financing statement (4)
1) Name of debtor
2) Name of SP
3) Description of Collateral
What is required to be on a fixture filing ?
Name of the debtor, - necessary to prefect
Name of the secured party- necessary to prefect
Description of the collateral - necessary to prefect
Additional requirements for property related collateral (fixtures)
The financing statement must indicate that a SA covers this type of collateral
It must note that it is being filed in the local real property records
Describe the real property to which the collateral relates
It must name the record owners of the real property if the debtor is not the person who has an interest in the real property
The Debtor has to
1) Authorize the financing statement in a authenticated record (does not have to sign the filing though) usually done by SA
A human Debtors name
On a financing statement in Virginia use name that is on the ID/legal name
A business name
On a financing e, use the name on the articles of incorporation or on last public organic record
Description of the Collateral
A Statement that the financing statement covers “all assets” or “all personal property is effective to perfect a security interest
Errors in the financing statement
General rule is that minor errors in a financing statement do not affect perfection unless they make they make the financing statement seriously misleading
Error in the debtors name are generally seriously misleading unless
If the search for the correct name of the debtor would uncover the financing statement with the error, the error is not seriously misleading
Filing office problems
If the search for the correct name of the debtor would uncover the financing statement with the error, the error is not seriously misleading
If the filing office office indexes the financing statement incorrectly, that has no effect on perfection
In virginia, if the filling office becomes aware that a record may have been wrongfully filed, then the filing office may review the record, and if appropriate void and remove the record
Duration of Financing statement
Financing statements lapse 5 years after the date of filing unless they are continued
When an obligation is paid back, a termination statement voids the financing statement
