Study Guide, Creditor S Rights, Part II, Secured Transactions Chapter 24

Law 3800

Legal Environment

Dr. Edmonds

Study Guide, Creditor’s Rights, Part II, Secured Transactions Chapter 24

I. What type of transaction does Article 9 of the UCC apply to?

II Recall our discussion of “fixtures” from Chapter 43; does Article 9 apply to fixtures? (See page 575) Real property?

III. Define and give examples of the following:

Security interest

Secured party

Collateral

Debtor

Security agreement

Default

Repossession

Perfection

Financing statement

IV. List and explain the four categories of “goods” recognized by Article 9 Distinguish “goods” from real property

V. When Article 9 was first written, “software” didn’t exist. How does Article 9 now address software?

Study Guide, Creditor’s Rights, Part II, page 2

VI. What does “Attachment” mean and may it occur?

VII. What does “attachment to future property” mean? List the two classes of future property.

VIII. What is “perfection”? What does it mean for a creditor?

IX. Explain the following three common modes of perfection:

Filing

Possession and mandatory perfection by possession

Automatic perfection in consumer goods

X. What is a PMSI? Why does a PMSI perfect automatically and what does that mean?

XI. Are motor vehicles, boats, trailers and mobile homes covered by Article 9? Why?

XII. What happens if a debtor moves the collateral to a new State?

XIII. Does a security interest go with the collateral when it is sold or transfer to another person? But what about a BIOC?

XIV. What is a lien? An artisan’s lien? A mechanic’s lien? From our class discussion, explain the two types of judicial liens.

XV. Explain the phrase “priorities among creditors”.

XVI. State and explain the three rules of priority.

XVII. If the debtor goes bankrupt, what happens? See In Re Roser, pages 583 and 584. What status does a bankruptcy trustee have as of the date of the filing? Does this make a perfected security interest particularly valuable?

Study Guide, Creditor’s Rights, Part II, page 3

XVIII. If a debtor defaults (define default) may the creditor take possession of the collateral?

XIX. What happens if the collateral doesn’t produce the entire amount owed? If the debtor has gone bankrupt?