Article 9 Secured Transaction Process: Debtor buys on credit from SP > SP takes a Security Interest in Debtor's Colfateral to ensure payment > SI allows SP to take collateral for failure to pay > For the SI to be effective steps for Atfachment must be taken > After attachment, if default, SP has right to take collateral > But attachment does not provide SP rights against other P who might have an interest in same collateral > To ensure right, SP must take steps to Perfect the SI > For conflicting interests in collateral, Priority determines superior interest. Order: Collateral>Creation>Perfection>Priority>Performance/Enforcement/Breach>Remedy DEFINITIONS:
2. Secured Party's Name 3. Indication of Collateral a.9-504 provides the indication of collateral is sufficient if: i. Complies w/ 9-102 descriptions OR ii. Indicates that FS covers all assets of the debtor. b. NOTE: Differs from the SA 9-108 b/c FS need not indicate AAP and can be super generic and still be valid. ii. FS SHOULD have 9-516: (Additional)
3.If SI is perfected in another JX, SI rem location for 4 months 4. Secured party MUST file in the new JX w/in 4 months after the relocation to remain perfected 5. Otherwise, after 4 months, the creditor is unperfected 6. Short Hand Rule if a debtor relocates: a. A secured creditor is absolutely perfected w/in 4 months after relocation against non-purchasers fected w/in 4 month ers IF the secured creditor files in the new location w/in the 4 month period. ix. Duration, Continuation and Termination 9-513 and 9-515: Duration 9-515(a): FS is effective for 5 years 2. Continuation: filed w/in 6 month period before the 5 yrs. ends a. If not, the FS is ineffective (as if were never filed) 9-510 3. Termination 9-515: If the 5 year period ends, the FS lapses and is leemed never perfected against a purchaser for value. 4. Amendments 9-512: Alternative [A] or [B] (chosen by the States) x: Exceptions: Filings effective for all collateral except D. Accounts & Money xi. NOTE: Fixfures cant perfected in a FS b. Perfecrion by Possession 9-313: General Rule: Perfection by possession of Goods, Negotiable Documents, Instruments, Money, or Tangible Chattel Paper is sufficient. 1. Remains if possession is retained does not require intent possess 2. Repossession of 9-313 collateral is sufficient to perfect. ii. NOTE: CANT Possess Intangibles, Accounts, D. Accounts, E Chattel P
i. Tangible Collateral or Goods: (depends 1. Consumer Goods 9-102(23) and Comment 4 2. Inventory 9-102(48) and Comment 4 3. Farm Products 9-102(34) and Comment 4 4. Equipment ii. Intangible or Semi-Intangible Collateral: (depends on nature of C) 1. Instruments 9-102(47) and Comment 5(c) 2. Documents 9-102(30) and Comment 16 3. Chattel Paper 9-102(11) and Comment 5(b) 4. Accounts 9-102(2) and Comment 5(a) 5. Deposit Accounts 9-102(29) and Comment 12 6.I Investment Property 9-102(49) and Comment 6 7. Commercial Tort Claims 9-102(13) and Comment 5(g) 8. General Intangibles 9-102(42) and Comment 5(d) iii. Proceeds: 9-102(64) and Comment 13 SECURITY INTEREST - SECURITYAGREEMENT - ATTACHMENT Creation of SI (START HER