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ARTICLE 9 Review Handout.pdf - ARTICLE 9 – SECURED...

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1ARTICLE 9SECURED TRANSACTIONSIn any Article 9 transaction, the ultimate goal is perfection in order to have priority over othersecured parties. In any given transaction, there are a number of issues we deal with under thissection of the Code.1.Scope of Article 92.Classification of the collateral3.Validity of the forms4.Creation of the security interest5.Attachment6.Perfection7.PMSI8.PriorityLADDER OF PRIORITYSPINSJUG
2Priority Rules1.Secured Party v.Unsecured Party:_________________________________________2.Unperfected Secured Party v. Unperfected Secured Party:____________________________________________________________________________________________3.Judicial Lien Creditor v. Unperfected Secured Party: __________________________Under 9-323 (b):A judicial lien creditor has superior rights in collateral covered byfuture advance clauses if the advance was____________________________________________________UNLESS the advance was made _______________________________or pursuant to a commitment entered into _____________________________________.4.Perfected Secured Party v. Earlier Unperfected Secured Party: _________________________________________________________________________________________________________________________________________________________________5.Perfected Secured Party v. Perfected Secured Party: _________________________________________________________________________________________________6.Perfected PMSI v. Earlier Perfected Secured Party: ___________________________7.Buyer in the Ordinary Course (BORC): _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________8.PMSI Lender v.PMSI Seller:______________________________________________Buyers in the Ordinary CourseBuyer in the ordinary course is one who pays ________________________ and has _____knowledge that the ____________________________________________________. The BORCcan know of the security interest but cannot know that the sale violates another’s rights.9-320(a)BORC takes free of all security interests created ________________________, eventhough the security interests are ______________________________________, and eventhough the BORC knew of the security interest.9-320(b)Consumer buyer, Consumer seller, buying consumer goods (“yard sale” exception)The consumer buyer has priority over competing interests in the collateral UNLESS _________
3____________________________________________________________. Thus, a 9-320(b)buyer will have priority over a PMSI in consumer goods creditor, which was automaticallyperfected but the secured party did not file a financing statement.SCOPE OF ARTICLE 9A.Article 9 governs transactions creating a consensual lien in:1)__________________________________________________;2)__________________________________________________;3)__________________________________________________;4)__________________________________________________;i.A transaction in which a person delivers goods to a merchant for thepurpose of sale where the merchant deals in goods of that kind under adifferent name; is not an auctioneer; and _____________________________________________________________________________________.B.Article 9 does not apply to:1)__________________________________________________;2)__________________________________________________;3)__________________________________________________;4)Sale of accounts, chattel paper, payment intangibles or promissory notes_________________________________________________________;5)Assignment of accounts, chattel paper, payment intangibles or promissory notes_________________________________________________________________;6)An assignment of a right to payment under a contract to an assignee_________________________________________________________________;7)An assignment of a single account, payment intangible, or promissory note to anassignee ______________________________________________________.CLASSIFICATION OF THE COLLATERALNature ofthe Collateral: Classification depends on the Debtor’s announced useA.Goods: All things which are movable at the time the security interest attaches or whichare fixtures and the unborn young of animals and growing crops

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Term
Fall
Professor
NoProfessor
Tags
Uniform Commercial Code, Security interest, Secured transaction, Unperfected Secured Party

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