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Flashcards in Secured Transactions Deck (43)
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1

Article 9 security interest

consensual lien on personal property

2

Types of personal property (goods)

1. Consumer goods
2. Farm products
3. Inventory
- goods held for sale
- goods held for lease
- goods that are rapidly consumed
4. Equipment (residual category)

3

Account (definition)

Right to payment arising out of one of the transactions w/n article 9

4

Types of Accounts

1. Sale of goods
2. Rendition of services

5

Article 9 instrument

Article 3 negotiable instrument

6

Types of Personal Property (non-goods)

1. Accounts
2. NIs
3. Chattel Paper
4. Deposit Accounts
5. Documents
6. Investment Property
7. Commercial Tort Claims (CTCs)
8. General Intangibles

7

Chattel Paper

1. Written lease of personal property
2. Documentation generated by a secured transaction

8

Deposit Accounts (not included)

Consumer account when the transaction is for a consumer purpose

9

CTCs

1. Any tort claim that a business has is a CMT
2. Tort claims by individuals are CMTs if they arise out of the operation of a biz + do not involve PI.

10

General intangibles

Residual category for all non-goods

11

Attachment (effect)

Article 9 event when a creditor acquires a security interest and becomes a secured party.

Attachment creates rights against the debtor

12

Attachment events (Very Rich Shit)

1. Value given
2. Debtor has to have rights in the collateral
3. SOF

13

Article 9 SOF

1. Debtor must authenticate
2. Evidences grant of security interest
3. Describe collateral

14

Article 9 SOF description

*Cannot be super-generic

OK:
"All inventory"
"All equipment"
"All chattel paper"

15

Description of CTCs

Must be somewhat specific (date)

16

Description of consumer goods

Even more specific:
OK:
"All furniture"
"All snowmobiles"

17

SOF Exception

Possession by secured party

18

After acquired property clauses

OK

Exceptions:
- CMTs
- Consumer goods must be acquired w/n 10 days of value given

19

Future advance clauses

Eliminates the need for multiple security agreements

20

Proceeds (effect)

Security interest will automatically attach to identifiable proceeds

21

Proceeds (definition)

Anything the debtor acquires as a consequence of the debtor's rights int he collateral

22

Perfection by Financial Statement

Perfects a security interest in all types of collateral except - deposit accounts

23

Correct filing state

Where debtor is located regardless of the location of collateral

24

Financial Statement Elements

1. Debtor name
2. Secured party name
3. Description of collateral
4. Authorized by debtor

25

Filing statement duration

5 years

26

Perfection by possession

Valid but not for:
-account
-CTC
-general intangible
-deposit account

27

Perfection by control

ok for deposit accounts

28

Automatic perfection (def)

Perfection upon attachment

29

Purchase-money security interest

Applies only to goods

30

How to get a PMSI

- sell goods on credit
- lend an enabling loan