Secured Transactions

• For each piece of collateral:
• -secured parties (attachment, PMSI, security interest, perfection)
• -priorities
• -buyers' rights
• -remedies

Secured party gives value, debtor has rights in collateral, and debtor wither signs security agreement or gives possession of the collateral to secured party under oral agreement (pledge).

• Must:
• -grant security interest
• -identify collateral
• -be signed by debtor

Farm products, inventory, consumer goods, equipment. Must be defined by debtor's use at time of attachment.

Valid and attachment occurs when debtor acquires rights in the collateral.

• -Seller: credit seller gets PMSI for unpaid purchase price.
• -Lender: lends debtor funds to purchase collateral, takes PMSI in collateral itself.

Attachment + Possession

Perfection by filing requires a financing statment that gives debtor's correct name, describes collateral, and authorized by debtor (by signing security agreement)

Must be filed with Department of Licensing for everything except filings against fixtures (county real estate records).

Perfected has priority over unperfected; between 2 perfected interests, first to file has priority.

PMSI in inventory has superpriority if filed and signed, and written notice given to prior secured parties of record before debtor receives possession of collateral.

• -Subject to perfected security interest
• -Free from unperfected security interest

Perfected security interest remains effective when sold without secured party's permission and aslo attaches to proceeds of sale received by debtor.

takes free when bought in good faith and debtor is dealer of those goods.

requires that debtor have defaulted and must not breach peace.

Creditor must give 10 days notice of public/private sale to debtor and other secured parties and all aspectrs of sale must be commercially reasonable.

go to expenses and unpaid claims of repossessor, unpaid claims of secured parties with lower priority, and surplus (if any) to debtor.

Secured party is liable to debtor for any loss or damage caused by violation of Article 9, including claims for conversion.

PMSI in inventory takes superpriority if secured party files and gives notice to other secured parties of record of the secured interest before debtor takes possession.

PMSI in noninventory collateral has priority in same collateral if it is perfected within 20 days after debtor receives possession of the collateral.

SI is valid against subsequent transferees.