VA _ Secured Transactions

Question 1

What are the 3 requiements for Attachment?

Answer 1

1. Value given by the secured party
2. The debtor must have rights in the collateral (some property interest in the collateral)
3. There must be a security agreement meeting one of the following requirements
   * There is an authenticated security agreeement that describes the collateral, or
   * The secured party has possession or control of the collateral pursuant to an oral or unauthenticated security agreement

Question 2

What is attachment

Answer 2

The process by which a secuirty interest becomes enforceable against the debtor with respect to the collateral

(an arrangement linking a debt to a particular piece of collateral; focus is on the relationship b/w the debtor & the creditor)

Question 3

Framework for Secured Transactions Problem

Answer 3

Framework for Secured Transactions Problems
* Step 1—Determine that you have a secured transactions problem.
o Trigger words = security agreement and/or security interest

• Step 2 – Identify and classify the property at issue.
  o Hint: Look at the call of the question.
• Step 3—Determine which parties have or claim an interest in the collateral.
• Step 4—At least one will be a secured party with a security interest.
  o For each security interest, assess:
   1. Attachment: Has that security interest attached? To which collateral? When?
   2. Perfection: Has the secured party perfected its security interest? When? How? Has anything happened that might cause the secured party to lose perfection?
• Step 5—Use this information to find the appropriate priority rule.
• Step 6—Apply the priority rule to the facts and resolve the dispute.

Question 3

What is perfection?

Answer 3

The process that stakes the secured party’s claim, so that the secured party might have priority over a later party.

Question 4

What are the 6 methods of perfection (once attached)?

Answer 4

1. Filing
2. Possession
3. Control
4. Alternate Perfection Systems
5. Pefection under a state’s certificate of title law (e.g., car/motorcycle)
6. Automatic pefection