Trying to outline Article 9 just seems to be unworkable at present. SC Repossesses the Collateral. (Sale is conducted by SC.) That is a "fixture filing." A financing statement, by itself, will probably not be found to constitute a valid SA.

A SI continues to encumber proceeds only so long as they remain "identifiable." (See Code for special minimum amount for consumer goods.) No contracts or commitments. Realty with equipment therein-equipment is subject to chattel mortgage. If D exchanges the collateral for non-cash proceeds of a type in which filing is required in a filing office other than the one in which the original collateral was perfected by filing, SC must refile.

Under the lowest immediate balance test, when a D commingles cash proceeds with other money in a bank account, the amount of collateral remaining in the account is equal to the lowest balance of all funds in the account between the time the collateral was deposited to the account and the time the test was applied. This rule's real beneficiary is the general unsecured creditor, who never even filed a lien.

Proceeds Defined. Secured Transactions Outline - Secured Transactions Outline Five Main Topics What is the SCOPE of Article 9 applies to consensual security interest in, 1 out of 1 people found this document helpful, What is the SCOPE of Article 9? If yes, go to ii. Secured Creditors. 9-401(1)(c) Third Alternative (New York) Is the collateral: * equipment used in farming operations * farm products * accounts or general intangibles arising from or relating to the sale of farm products by a farmer * consumer goods? Has D responded within 21 days after the notice was sent? Determine the amount of the loan outstanding on the day of the filing (100) and the value of the collateral on that day (85). 1. briefs keyed to 223 law school casebooks. Future Advances. Single authoritative copy. It doesn't work that way in real estate (urecorded transfer beats a subsequent lien creditor)! See §§ 9-501 - 9-507 of the code.

General Intangibles Debt owed to D by third party is evidenced by neither and debt arises from something other than goods sold or leased or services provided. 9-502(1). "Purchaser" does not include trustees in bankruptcy. Possession or Signed Writing. Some courts require that the holder of the collateral be within the SC's exclusive control.

Barter for same type of collateral. Changes only w/ participation of secured part. Salisbury. c. Is the security interest perfected? Errors in the Financing Statements. SA in place of a FS. Some states extend the grace period to 15 or 20 days. Under 547(c)(3), a BT may not avoid a PMSI if SC disbursed the loan proceeds at or after the signing of the SA and perfected the interest within 20 days after D received possession of the collateral. (The reservation of title by a seller of goods notwithstanding shipment to the buyer is limited in effect to a reservation of a SI.) Was the future advance made while the SI is perfected by filing or possession? Preferences. (e.g., the right to receive payment under licenses of patents and copyrights) 9-106. Creditor Against Third Party. Note that the parties can also agree to grant SC this right even if D did not default. (States debate whether you need actual or if constructive is enough.) [Actual use.] Notice. 1-208. 9-313(5). If yes, go to iv. If no, the owner/encumbrancer wins. If no, LC has priority. If yes, go to v If no, go to ix.

To the extant that they give rights to D and impose rights on SC, these rules may not be waived unless otherwise noted (and then only by post-default written agreement). (the standard should be no more stringent than that applied to a FS, which need not be such as to enable a stranger to select the property . 9-203 lists 3 requirements for the creation of a security interest enforceable against the debtor (i.e., if D defaults, SC can foreclose) and against third parties. See §§ 9-310 - 9-316 of the code. Table of Content. Anything alse would be subject to 1-203.) ²! "

Certificate of Title Under 9-311, D has the power to sell the collateral. If yes, then the future advance has the same priority as the original SI. 9-109(4). Attachment 3.

Step one: Determine the date of perfection by reference to state law [including reference to state grace-periods. SC will remain perfected for 10 days after the receipt of the proceeds by D. To be continuously perfected, such that his priority dates from the original filing, SC must refile within those ten days. b. Authors. If no, SC wins. 9-203. In that case, a pre-existing SC with a perfected SI in D's accounts would beat the subsequent PMSC. 9-302(1)(d). However, in highlighting this supplement I can see that studying it will be somewhat ineffective since it will be too dense. Introducing Textbook Solutions. What is the collateral? If no, then go to question vi.

9-306 defines "proceeds" as whatever is received on the sale, exchange or other disposition of collateral. If yes, SC wins. If inventory, then not equipment. Some state statutes permit cure and reinstatement of the original loan terms of payment even after the creditor has accelerated. SC entered D's home (NOT driveway) - Probably. (However, some courts disagree, requiring that the FS alone be capable of enabling the searcher to identify the collateral. Like execution but pre-judgment. ߦd�=�����KP�'ȰU�;���O.�T�@"��i��k�DF��#zڐ��}�N��9I�B��4�� KV���L��\L"�Qh��ڸ8���M`�i�İү"�d����. Unless otherwise agreed, UCC 9-503 gives the secured party the right to take possession immediately upon default. If no, LC has priority. Unsecured Creditors. Has SC sent notice to the other creditors who sent him written notice before he sent notice to D? 9-504(3). Are both SIs unperfected? F�罷�\��R�^K��.���\�ݔ��.�sUUM$+�,*iy�j[�U*ݥ�A��Sĥ�����֦4)�l�#)@)�ȳ)��R����Aߙ �'�`D�����r�"�u���7ڄv�����p�ߠIGH� 9-312(5). b. See §§ 9-102(2) & 9-310 of the code. If no, then the other SC wins. a mechanic's lien) are generally not governed by Article 9 but by the individual statute that creates them. Unique, identifiable, generally unalterable. If yes, SC wins. If SP can show that the description of the collateral is ambiguous, resort can be had to parol evidence to identify the collateral. 9-504(1). 9-401(3) provides that the SC's filing remains effective despite the change in use. 9-401(1)(a) If no, then file in the county where the goods are kept, and if the goods are crops, in the office in the county where the land is located. law school study materials, including 735 video lessons and 4,900+ Can SC demonstrate that neither BT nor D can provide SC with adequate protection? In order for the collateral to be inventory, D must be in the business of selling or leasing. 9-301(4).

If yes, go to vii. )���Q�k{rG�A2�@?�E�s�>�i�X�J�����U�����_��&|�E������4PK��_�;��I�jT��R��4� A FS need not do that; it need only give notice.) In addition, compliance with the national system is necessary for perfection. If buyer has it, he owns it and seller just has a SI. 9-105, 9-106, 9-109, 9-313. If yes, go to xii. Definition of Mobile Goods: "Mobile goods" are goods which are mobile and which are of a type normally used in more than one jurisdiction and which are either equipment or are inventory leased or held for lease by D to others. Consumer Goods. 9-313(4)(a). If yes, then go to question vii. School Class Professor Appalachian School of Law: Secured Transactions: … D trades inventory for non-inventory elephant. What happens when the case is filed? If yes, then SC can have the stay lifted. (9-401(1)(a)). If no, then the FS is not effective. Collateral in the Possession of the SC. 9-306(1). The point of Secured Transactions is to allow a lender to create a security interest in personal property. If yes, go to vii.

9-107(b).

Is the SI perfected? (i.e., that it enables C to get more than the pro-rata share under Chap.

9-402(6). If the SI secures an indebtedness, SC must account for surplus and D must pay a deficiency. (20-15=5) Of course, if SC is fully secured 90 days before the petition date (i.e., that there is no difference between the amount of the debt (100) and the value of the collateral (100) on that day), then that creditor will never be subject to a preference attack. What happens when D defaults? 9-103(3)(e).

When third parties are bound, courts will interpret the security agreement more literally than in accord with the intentions of the parties (including the description of the collateral). (The minority view requires an express clause.)

Exam Note: Any party may waive their priority through a subordination agreement. Does D have either an interest of record in or possession of the real estate? No deficiency judgment. Why? If a FS has been filed covering the original collateral, and the non-cash proceeds are of a type such that that FS, filed in the place it was filed, is the appropriate means of filing, the original statement covers the proceeds as well. Private Sale. There is nothing to stop a debtor from paying one unsecured creditor before another. Garnishment: Judgment creditor reaches debts owing D from third party. Seller retains title until price is paid.

This includes fixtures, personal property that is "fixed" to real property such as a water heater. ™! d. Against whom will the secured party prevail? Remedies of Unsecured Creditors Under State Law. Changes in D's Name. Does D reside in the state? The most comprehensive source of law school outlines anywhere with the only outline exchange program available. Individual Names: Courts have consistently favored the longer or more formal version of a name over shorter, more colloquial versions. 9-107(a) One who lends money to D in order to enable D to buy the collateral obtains a PMSI if the loan is in fact used to buys the collateral. 1-201. If yes, PMSC gets priority in the inventory and in identifiable cash proceeds received on or before the delivery of the inventory to a buyer. The cases debate how specific the description in the SA must be. If D or the collateral relocates to another state, is the initial filing still effective? Barter for different type of collateral, same office. Such a filing is not a "fixture filing." [Ziluck: NO.

Cases go both ways. A copy of the SA is sufficient as a FS if it contains the required information and is signed by D. 9-402(1). (547(e)(3) provides that a transfer is not made until D has acquired rights in the property transferred.) If yes, then go to question xii. First, be aware of how Secured Transactions is tested. Priority in After Acquired Property.

Sent to and maintained by secured party. If yes, go to iii. 9-105(b). Address of SC from which information concerning the SI can be obtained. 9-401(1)(c). What state should SC initially file in? Good Starting Point in Print: James White and Robert S. Summers.