Term
| Types of Collateral - Goods |
|
Definition
- Consumer goods - personal, family, or household purposes
- Farm Products - Crops, livestock, or supplies used or produced in farming (must be a farmer)
- Inventory - goods held for sale or lease/materials used or consumed by business in short time
- Equipment - bought for use in business [DEFAULT]
Type of goods is determined by how the debtor uses them, not by the nature of the goods |
|
|
Term
| Types of Collateral - Intangible Property |
|
Definition
- Instruments - Negotiable instruments or any writing showing a right to $ transferable by delivery with endorsement in ordinary course of business
- Documents - Writing showing control over goods
- Chattel Paper - Record showing $ obligation & security interest in or lease of specific goods
- Investment Property - stocks, bonds, mutual funds
- Accounts - Right to receive payment
- Deposit Accounts - Non-consumer bank accounts
- Commercial Tort Claims - Must not be PI or death
- General Intangibles - Anything other than above
|
|
|
Term
|
Definition
1) Security Agreement
a) Possession
b) Control (deposit account, echattel paper, investment)
2) The Secured Party has given value
3) Debtor has rights in the collateral
|
|
|
Term
|
Definition
1) Automatic Perfection
2) Possession
3) Control
4) Notation of Lien on Title
5) Filing a Financing Statement |
|
|
Term
|
Definition
| First to file or first to perfect, whichever is first |
|
|
Term
| Unperfected v. Unperfected |
|
Definition
|
|
Term
|
Definition
|
|
Term
| PMSI in Consumer Goods or Equipment |
|
Definition
PMSI wins over conflicting interests in the same goods (or the proceeds of said good) if the PMSI is perfected at the same time as debtor received possession or within 20 days thereafter.
MUST BE CONSUMER GOODS OR EQUIPMENT |
|
|
Term
| PMSI in Inventory or Livestock |
|
Definition
PMSI wins over conflicting interests in the same goods (or chattel paper, instruments, or identifiable cash proceeds) if, before debtor receives possession, the secured party (1) perfects; & (2) sends authenticated notification to holders of previously filed conflicting interests (notice is good for 5 years) MUST BE INVENTORY OR LIVESTOCK (p. 23 for questions) |
|
|
Term
|
Definition
Seller-financed beats financer-financed |
|
|
Term
| Investment Property Fight Rules |
|
Definition
1) Control beats everything
2) Control is ranked 1st in time
3) Security interest to debtor's intermediary beats security interest given to another secured party
4) Except for above, 1st to file wins |
|
|
Term
| Deposit Account Fight Rules |
|
Definition
1) Control beats proceeds
2) Control ranked by 1st in time
3) Control in name beats other control
4) Bank that controls by maintaining account beats all except name control |
|
|
Term
| Statutory Lien v. Perfected |
|
Definition
|
|
Term
| Secured Party v. Buyer of Collateral |
|
Definition
| Security interest transfers with the collateral |
|
|
Term
| Authorized Sale of Collateral |
|
Definition
| Express or implied authorized sales remove security interest from collateral |
|
|
Term
| Unauthorized Sale of Collateral |
|
Definition
Take with security interest unless:
1) Buyer in the ordinary course - buys in good faith w/o knowledge of rights violation
2) Garage Sale Exception - Consumer goods sold by consumer to consumer (knowledge of rights doesn't matter)
3) No knowledge of unperfected security interest |
|
|
Term
| Secured Party v. Judgment Lien |
|
Definition
- Perfection before Levy - security interest wins
- Levy before Perfection - judicial lien wins |
|
|
