This preview shows page 1. Sign up to view the full content.
Unformatted text preview: may take possession of the collateral on default without judicial process if it can be done without a breach of the peace. breach Sale– the secured party may sell, lease, license or otherwise dispose of any collateral. license Acceptance– the secured party, unless the debtor objects, may retain the collateral in full or partial satisfaction of the obligation (with the exception of the compulsory disposition of some consumer goods). some Priorities Priorities
Unsecured Creditor VS Unsecured creditor Creditor with unperfected security interest Creditor with perfected security interestnoninventory Creditor with perfected security interestinventory Buyer in ordinary course of business Consumer buyer of consumer goods Lien creditor (including trustee in bankruptcy) Trustee in bankruptcyvoidable preferences = Creditor with Unperfected Security Interest Creditor with Perfected Security Interest Creditor with Perfected Purchase Money Security Interest a
first to attach E E E E E E E a a
first to file or perfect first to file or perfect a a a if PMSI perfected
within grace period E E E E E E a if PMSI gives notice
and perfects by time debtor gets possession Eif created by
immediate seller a Eif not filed
first in time, but PMSI has grace period E
first in time Eif secured party
perfects within grace period a if PMSI perfects within
grace period Suretyship -- Nature and Formation Formation
Surety – a person who promises to answer for the payment of a debt or...
View Full Document
- Spring '09