how do you attach to secured transaction?

Must do all "PIG"(3) -prop has 2 B owned by debtor(rights 2collateral), INT created(take possession or get signed security agreement), give value 2 debtor

how do you perfect to secured transaction?

Must do any 1 of 3 "FAT":-file a financing stmt, automatic perfection, take possession

how do you get automatic possession?(consumer goods only)

have to be PMSI in consumer goods only-if you file w/in 20 days of attachment(retroactive 2 date of attachment),

A proper financing statement need only include

only include a description of the collateral, the name and address of the debtor, and the name and address of the creditor. Any other items (eg, amount of the debt) are optional.

When a secured party rightly repossesses and sells a debtor’s collateral the proceeds are

applied to the reasonable expenses of the sale, then the debt of the primary secured creditor, then debt owed to subordinate creditors, then the rest of the proceeds, if any, reverts to the debtor.

In a secured transaction, the creditor has three responsibilities to the debtor:

(1) take reasonable care to preserve the collateral, (2) confirm the debt balance when requested, and (3) file or send the debtor a termination statement (eg, collateral release) when the debt is paid.

A creditor must satisfy three requirements to properly attach a security interest:

(1) the debtor must own (ie, have rights to) the collateral, (2) the creditor must create an interest in the collateral (security agreement or possession), and (3) the debtor must have received value.

Under the Secured Transactions article of the UCC, when does a security interest become enforceable?

The value has been given, the secured party receives a security agreement describing the collateral authenticated by the debtor, and the debtor has rights in the collateral.

Attachment occurs after all three: "PIG"

1)Property (ie, collateral) "owned" by debtor (ie, has rights) 2)Interest in the collateral is created by either Signed security agreement or Take possession (writing not required) 3)Giving value to debtor (present or past)

Perfection occurs after any one of the three: "FAT"

1) File a financing statement 2) Automatic perfection (ie, a purchase money security interest [PMSI]) 3) Take possession of collateral (writing not required)

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Question	Answer
how do you attach to secured transaction?	Must do all "PIG"(3) -prop has 2 B owned by debtor(rights 2collateral), INT created(take possession or get signed security agreement), give value 2 debtor
how do you perfect to secured transaction?	Must do any 1 of 3 "FAT":-file a financing stmt, automatic perfection, take possession
attach gives rights to secured debtors
perfection gives rights to 3rd parties
how do you get automatic possession?(consumer goods only)	have to be PMSI in consumer goods only-if you file w/in 20 days of attachment(retroactive 2 date of attachment),
filing w/in 20 days of attachment only works for consumer goods and equipment	but not inventory
Inventory Rule
A proper financing statement need only include	only include a description of the collateral, the name and address of the debtor, and the name and address of the creditor. Any other items (eg, amount of the debt) are optional.
When a secured party rightly repossesses and sells a debtor’s collateral the proceeds are	applied to the reasonable expenses of the sale, then the debt of the primary secured creditor, then debt owed to subordinate creditors, then the rest of the proceeds, if any, reverts to the debtor.
In a secured transaction, the creditor has three responsibilities to the debtor:	(1) take reasonable care to preserve the collateral, (2) confirm the debt balance when requested, and (3) file or send the debtor a termination statement (eg, collateral release) when the debt is paid.
A creditor must satisfy three requirements to properly attach a security interest:	(1) the debtor must own (ie, have rights to) the collateral, (2) the creditor must create an interest in the collateral (security agreement or possession), and (3) the debtor must have received value.
Under the Secured Transactions article of the UCC, when does a security interest become enforceable?	The value has been given, the secured party receives a security agreement describing the collateral authenticated by the debtor, and the debtor has rights in the collateral.
Attachment occurs after all three: "PIG"	1)Property (ie, collateral) "owned" by debtor (ie, has rights) 2)Interest in the collateral is created by either Signed security agreement or Take possession (writing not required) 3)Giving value to debtor (present or past)
Perfection occurs after any one of the three: "FAT"	1) File a financing statement 2) Automatic perfection (ie, a purchase money security interest [PMSI]) 3) Take possession of collateral (writing not required)
Under the Secured Transactions Article of the UCC, what secured transaction document must be signed by the debtor?	Security agreement

Created by: tiffany17ann

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