Secured Transactions

Tangible Collateral Categories

100

Goods used for personal, family, or household purposes

Consumer Goods

200

Goods used or produced in farming that are in a possession of a farmer

farm products

300

Goods held for sale or lease and goods consumed by a business 

Inventory

400

Goods that are not consumer goods, inventory, or farm products

Equiptment

500

Name an example from each Article 9 tangible collateral categories

CG - home stereo 

I - fuel to run a factory

FP - cows, chickens, eggs

E - Machinery used in a factory

Intangible Collateral Categories

100

notes, drafts, and certificates of deposits

instruments

200

Bills of lading and warehouse receipts 

Documents

300

Records evidencing a monetary obligation and a security interest 

Chattel Paper

400

Rights to payment for goods and services

Accounts 

500

Savings accounts, passbook accounts 

Deposit Accounts - note that article 9 only applies to non-consumer (business) accounts, and proceeds of other collateral 

Miscellaneous

100

whatever is received upon the sale, exchange, or other disposition of collateral 

Proceeds 

200

Name two ways to sufficiently describe collateral in a security agreement

1- broadly, by category or type

2- specifically - by serial number or other describing words

300

A PMSI in a motor vehicle is perfected by 

a notation on the title certificate

Creation of a Security Interest

100

A security interest is not enforceable unless it has...

Attached

200

Requirements of Attachment

(1) Parties agree to create the security interest (as evidenced by the creditor taking possession, the debtor's authentication of security agreement describing the collateral, or the creditor taking control of certain types of collateral 

(2) Value must be given by the secured party

(3) The debtor must have rights in the collateral (ex: ownership) 

AVR - agree, value, rights 

300

A creditor can take control over what types of collateral...

-non-consumer deposit accounts

-electronic chattel paper

-investment property 

400

What information goes in financing statement? 

name/address of D 

name/address of SP 

description of the collateral 

500

when will a mistake on a financing statement be enforceable?

if the mistake is not seriously misleading. Ex: if a search in the records would still find the record if using the erroneous name as search term

Fight Rules

100

Perfected v. Unperfected

Perfected SI wins

200

Secured Party v. Secured Party

first to file or perfect prevails 

300

Unperfected Secured Party v. Unperfected Secured Party

First to attach has priority 

400

PMSI in Inventory or Livestock

Has priority over a conflicting SI in the same collateral if: 

1. before D receives possession of the collateral

2. the SP perfects and sends an authenticated notification to previously held conflicting SI