Secured Transactions - Attachment Flashcards
(24 cards)
Attachments
Steps necessary to make a security interest enforceable against the debtor
For a security interest to be enforacebale against a debtor, the interest must:
attach to collateral
Attachment occurs when
- value given by secured party
- debtor has rights in collateral
- and detbor authenticated a security agreement or secured party has possession or control of collateral
When is an after acquired clause not effective?
if the collateral is a consumer good unless the detbor acquires the good within 10 days after secured party gives value or a commericial tort claim
What must secured party do for the security interest once security agreement is entered
Give value
A security agreement can provide that collateral secures
future value by secured party (future advances)
Value is given by:
- providing consideration to form a contract
- extending credit
- accepting delivery under preexisting contract or
- in satisfaction of a preexisting claim
A security interest attach only to
rights the debtor has in collateral
Attachment requires what? and what must the secured party satisfy?
security agreement and the secured party must satisfy the Art. 9 SOF
security agreement must be established by
- debtor’s authentification of agreement
- secured party’s possession or control of collateral
Authenticated record, security agreement must
- be in a record
- contian description of collateral
- be authenticated by debtor
For security agreement, a description is sufficient if it
reasonably identify collateral
authentification requires debtor’s
signature/symbol attached to the record with the present intention to do so
Can a original authenticated security agreement between a debtor and a secured party serve as a new debtor’s authenticated security agreement?
Yes
A secured party’s possession of tangible collateral must be
oral or written security agreement
A secured party’s control of collateral that has no physical existence (deposit account) satisfies
when debtor assent to the security agreement
A debtor with a rgiht to receive payment on an account, chattel paper, or a payment intangible from a third party may
assign right to the secured party
purchase-money security interest exist with two types of collateral
goods (including fixtures) and software
PMSI in goods exist when secured party
- gave value to debtor and debtor used value to incur an obligation enabled debtor to acquire goods or
- sold goods to debtor and debtor incurred an obligation to pay secured party all or part of purchase price
A PMSI in software exists when debtor
- acquired interest in software in an integrated transaction, **debtor acquired an interest in goods (computer) **and
- acquired interest in software for **purpose of using the software in the goods **
Accessions
goods physically united with other goods -> identity is not lost
A security interest can be created in an accession and a security interest created in collateral that becomes an accession is
not lost
Commingled Goods
physically united with other goods, identity is lost in a product or mass
Once goods are commingled, there is no security interest in original goods but
security interest may attach to resulting product or mass
