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Unformatted text preview: 9-26-06 Secure Transactions Law + Facts = perfect answer - list the law next to the facts that apply to it Article 9 Priority Rule Between 2 or more secured creditors - General Rule: 1st S. Cr. To file or to perfect has priority - Exceptions: o PMSI in Inventory has priority over a conflicting SI, if the PMSI in inventory is perfected and written notice is given to the conflicting S. Cr., before delivery of the colleteral to the o OMSI in noninventory has priority over a conflicting SI, if the PMSI in noninventory is perfected not later than 20 days after the delivery of the collateral to the Between A S. Cr. And a buyer - General Rule: A buyer has priority over an unknown, unperfected SI - Exceptions: o BITOCOB of his seller has priority over any SI created by his seller o Bona Fide purchaser of consumer goods for value has priority over an unknown, unfiled PMSI in consumer goods Bona Fide purchaser (in good faith) for value (consideration) Perfection = Attachment + One of the Following 1. Cr. Files a financing statement 2. Cr. Posesses the collateral 3. Cr. Takes control of the collateral 4. Cr. Notes the SI on the certificate of title of a motor vehicle 5. Cr. Attaches its SI (attachment alone) a. Only for a PMSI in consumer goods ...
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This note was uploaded on 04/16/2008 for the course L 540 taught by Professor Bowers during the Fall '06 term at Indiana.
- Fall '06