Secured Transactions

Question 1

WRITINGS: Qualifying as a Negotiable Instrument

Answer 1

In order for a writing to qualify as as negotiable instrument remember WOSSUP

• W: Writing
• O: payable Order to bearer
• S: Signed by the maker or drawer
• S: Sum certain
• U: Unconditional promise and no additional promises
• P: Payable on demand or at a definite time
• P: Payable in currency

Question 2

SUITS A/GST ∆: Two Theories

Answer 2

• Contract or Signature Liability
• Warranty or Transfer Liability

Question 3

PERFECTING A SECURITY INTEREST

Answer 3

A Security Interest can be Perfected in a “PIG”

• P Commercial Paper (NI’s, bonds or stock certificates).
• I Intangible Property
• G _Goods _

Question 4

ORDER OF PRIORITY

Answer 4

1. BIOC
2. PAC
3. LC
4. NOcie
5. AUPie
6. GUC

Question 5

ORDER OF PRIORITY: Specific Contests

Answer 5

1. AUPie v. World –> Enforce a/gst Dbt BUT lose to subsequent AUPie. Also los to PAC to LC and Buyer w/o know of SecIntrst
2. PAC v. World –> Defeats all exp 1st filing PAC(First in TIme, First in Right), PMSI-hldrs, BIOC
   
   1. Priority relates to Earlier Filing Date –> AACF vs. PMSI
   2. After Acquired Collateral Financier
   3. Hoder of Purchase-Money Security Interest