Module 29 Cards.txt

  1. Secured transactions are:
    - Simply a debt secured by personal property (chattels)
  2. A Purchase Money Security Interest (PMSI) Creditor is:
    - A creditor who advances money or credit to enable a debtor to obtain collateral and take a security interest in that collateral
  3. After acquired property clause
    - Creditor takes as a collateral property to be acquired by debtor at later date
  4. 3 Elements of Attachment (creation of secured agreement=
    • - must have an Agreement between creditor and debtor
    • - must have Value given by the creditor
    • - Debtor must have Rights in the collateral
  5. Perfecting means:
    - a creditor informing the public that he has dibs on a collateral
  6. No attachment after all 3 of these have occurred (3 ways to PERFECT):
    • - perfect by Taking possession of the collateral (negotiable instruments, sticks and bonds)
    • - Filing a financing statement (only way to take over AR)
    • - by attachment (only for PMSI creditors in consumer goods, wins against all other creditors)
  7. A financing statement for perfecting must contain:
    • - names and addresses of parties
    • -general description of collateral
    • - signature of debtor
  8. Two exceptions when a perfected creditor loses to a purchaser:
    • - One who perfects by attachment loses to purchaser without notice
    • - one who buys from a merchant in ordinary course of business takes free of all security interests, even if they had a notice of security interest
  9. A PMSI creditor can get priority over collateral by:
    • - non inventory, filing within 20 days from the moment the debtor gets possession to the collateral
    • - inventory, has to file and given written notice to creditors ahead of him, before debtor takes possession
  10. 3 Remedies of a creditor after default:
    • - Peacefully repossess the collateral and sell/lease it
    • - Strict foreclosure
    • - Sue debtor
Card Set
Module 29 Cards.txt