Exam 2 Study Sheet

Exam 2 Study Sheet - Security Interest Consensual lien on...

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Security Interest – Consensual lien on personal property (Security interest; secured creditor; debtor) Source = UCC Articles 9 “secured transactions” (go to outline for further notes) Identifying property: Specific description (ID #, Car, Serial #); General description “inventory” for sale, “equipment” not for sale, bank “deposit/accounts” Identifying debt: Specific description (particular note); general description “all debts owed by DR to CR” Attachment = Security agreement + Ownership + Lien Inventory Financing with a Floating Lien – investor present and future are debts from this CR to this DR Proceeds is what takes place of collateral Chapter 7 Bankruptcy (voluntary for natural persons and corporations, used to be involuntary as well but not anymore) Natural Persons (voluntary) No C/A to file for bankruptcy Estate – what creditor will get depending on if its “after acquired” or “owned at filing” Time of filing of petition determines whether it is “after acquired” or “owned at filing” Personal services income – hourly divide by time of filing Investment All in the estate (regardless of time of filing); not divided Fresh start – the property DR will start on o Exempt property transferred to fresh start (changed in 2005) Homestead – 125,000 dollar cap IRA – $1 million cap (Individual Retirement Account) 401 K – no cap 2 year waiting period to change residence o Golden Egg Property – “Fishy” property within 180 days (goes from Fresh start to Estate) Includes inheritance, divorce settlements, and life insurance (time of death) Transferee Fraudulent Conveyance Fresh Start Estate (anything transferred before bankruptcy) Collecting Powers (Trustee v World/Child) o Debtor helps Trustee and must cooperate with Administrator o X owes DR money not yet due – not collectible yet o Trustee has power to kick property out of the stay of bankruptcy and joint creditors will get it Avoiding Powers (A/P) o Fraudulent Conveyance Fraud on the bankruptcy court (claw-back in NY Times) For religious or charitable gift, exception for either: no more than 15% gross income or standard practice of giving Lien Invalidation Priority goes to lowest on list Sell without lien attached Chapter 7 bankruptcy, lien drops (USI = GCR) Preferences Avoided (C/A in bankruptcy only) TE v CR A for amount and treats all CR fairly Preference – treats all CR’s equally/fairly Preferential treatment – when they get paid better than Chapter 7 Routine debt – is NOT a preferential treatment GCR = UCR + URM + USI + UDFITL + Preferential Lien Executory Contracts Assumed or with Court Approval Rejected Trustee seeks judge’s permission to reject bad deal CR (Owner of boat files as a loser because long term good deal rejected by trustee) o Bankruptcy is a federal law If a trustee delegates a duty, the duty is extinguished
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This note was uploaded on 02/07/2011 for the course COMM 3420 taught by Professor Wheeler during the Fall '09 term at UVA.

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Exam 2 Study Sheet - Security Interest Consensual lien on...

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