Transcript CHAPTER 38: SECURED TRANSACTIONS

CHAPTER 38:
SECURED TRANSACTIONS
CHAPTER 38:
SECURED TRANSACTIONS
Learning Objectives:
• Scope of Article 9
• Creation and Perfection of a Security
Interest
• Floating Liens
• Rights of Secured Parties vs. Buyers
of Collateral and Other Secured Parties
• Rights and Duties Upon Debtor
Default
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INTRODUCTION TO
SECURED TRANSACTIONS
1. Nature of a Secured Transaction:
debtor grants a security interest in
personal property to a creditor, which
the creditor can use to obtain
satisfaction if debtor defaults.
2. Nature of Unsecured Creditors
3. Nature of Secured Debt
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SCOPE OF ARTICLE 9
1. Coverage of Article 9
2. Exclusions from Article 9
3. Classifications of Collateral:
a. Tangible Goods
b. Documentary Collateral
c. Intangible Property
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SCOPE OF ARTICLE 9
4. Tangible Goods:
a.
b.
c.
d.
Consumer goods
Equipment
Farm products
Inventory
5. Documentary Collateral:
a. Chattel paper
b. Documents of title
c. Instruments
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SCOPE OF ARTICLE 9
6. Intangible Collateral
a. Accounts
b. General intangibles
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CREATION OF A SECURITY INTEREST
1.
2.
3.
4.
Introduction
Security Agreement
Debtor’s Rights in the Collateral
Creditor Gives Value
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PERFECTION OF A SECURITY INTEREST
1. Essence of a Security Interest
2. Methods of Perfection:
a. Filing of a Financing Statement
b. Possession
c. Attachment
i. PMSI in Consumer Goods
ii. Temporary Perfection
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FLOATING LIENS
1. Definition: security agreement
describes the collateral as
including property to be acquired
by the debtor in the future.
2. After-acquired property
3. Future advances
4. Proceeds
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PRIORITY ISSUES
1. Generally
2. Secured Party vs. Buyers of
Collateral
a. Buyers in the Ordinary Course of
Business
b. Buyers of Consumer Goods
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PRIORITY ISSUES
3. Secured Party vs. Secured
Party
a. General Rule: First-in-Time
b. PMSI in Inventory Collateral
c. PMSI in Non-inventory Collateral
4. Secured Party vs. Lien
Creditors
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DEBTOR’S DEFAULT
RIGHTS AND DUTIES
1. Introduction
2. Rights and Duties of Secured Party
in Possession
3. Foreclosure Sale
4. Rights of Parties at Foreclosure
5. Strict Foreclosure
6. Debtor’s General Remedies
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CHAPTER 38:
SECURED TRANSACTIONS