Problem 18'7: Draft a Financing Statement

1
(No Transcript)
2
Problem 18.7 Draft a Financing Statement

• You are the secured party I am the debtor.
• This filing is to perfect the security interest
  you took in the first written assignment.
• I am the filing officer standard search logic is
  in effect.
• I recommend using the UCC-1 official form posted
  on eRes. (But you may not be able to save or
  email it.)
• Dont send filing fees or a formal cover letter.
• Due noon Thursday, March 4. Email it to
  lopucki_at_law.ucla.edu with the subject line, 250
  Financing Statement. Do not include the
  quotation marks in the subject line. Slip hard
  copy under the door of my office, room 3453.
  Keep a copy.
• Grading is pass/fail based on effectiveness.

3
Secured TransactionsAssignment 19

• Exceptions to the Filing Requirement

4
The Big Picture

• Part Two The Creditor Third Party Relationship
• Chapter 6-7 Perfection
• Assignment 16-18 Perfection by filing
• Assignment 19 Perfection by other means
• Chapters 8-9 Priority

5
Basic Concepts Possession

• Possession (1) Physical control of property or
  (2) the right to physically control property.
• Possession-gives-notice theory.
• 1. Searcher will look at the collateral
• 2. Possession will be visible
• Two invisible means of possession
• Agent One who acts on behalf of another, and
  subject to the others control
• 9-313(c)(1). A secured party takes
  possession of collateral . . . when the person in
  possession authenticates a record acknowledging
  that is holds possession . . . for the secured
  partys benefit. This is not necessarily an
  agency relationship.

6
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.

7
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument

8
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation,

9
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease,

10
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease, and is of a
  type that in the ordinary course of business is
  transferred by delivery with any necessary
  indorsement or assignment.

11
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease, and is of a
  type that in the ordinary course of business is
  transferred by delivery with any necessary
  indorsement or assignment.
• 9-102(a)(11). Chattel Paper means a record or
  records that evidence both a monetary obligation
  and a security interest in specific goods . . .

12
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease, and is of a
  type that in the ordinary course of business is
  transferred by delivery with any necessary
  indorsement or assignment.
• 9-102(a)(11). Chattel Paper means a record or
  records that evidence both a monetary obligation
  and a security interest in specific goods . . .

13
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease, and is of a
  type that in the ordinary course of business is
  transferred by delivery with any necessary
  indorsement or assignment.
• 9-102(a)(11). Chattel Paper means a record or
  records that evidence both a monetary obligation
  and a security interest in specific goods . . .
  or a lease of specific goods.

14
Basic Concepts Possession

• 1-201(24). Money is a government medium of
  exchange. Cash, but not cash in a bank account.
• 9-102(a)(47). Instrument means a negotiable
  instrument or any other writing that evidences a
  right to payment of a monetary obligation, is not
  itself a security agreement or lease, and is of a
  type that in the ordinary course of business is
  transferred by delivery with any necessary
  indorsement or assignment.
• 9-102(a)(11). Chattel Paper means a record or
  records that evidence both a monetary obligation
  and a security interest in specific goods . . .
  or a lease of specific goods. . . . Monetary
  obligation means a monetary obligation secured by
  the goods or owed under a lease . . . .

15
Characterizing Promises to Pay Money
Instruments
Chattel Paper
If it qualifies as an instrument, and is not
chattel paper, it is an instrument
If it is evidenced by chattel paper, it is
chattel paper
16
Basic Concepts Control

• 9-102(a)(29). Deposit account means an
  account maintained with a bank. The term does
  not include . . . accounts evidenced by an
  instrument. (Certificate of deposit).
• 9-314(a). A security interest in . . . deposit
  accounts . . . may be perfected by control of the
  collateral under section . . . 9-104.

17
Basic Concepts Control
9-104. A secured party has control of a deposit
account if
18
Basic Concepts Control
9-104. A secured party has control of a deposit
account if

• The secured party is the bank with which the
  deposit is maintained

Secured party
SI
Customer
Account
19
Basic Concepts Control
9-104. A secured party has control of a deposit
account if

• The secured party is the bank with which the
  deposit is maintained

Secured party
SI
Customer
Account
20
Basic Concepts Control
9-104. A secured party has control of a deposit
account if

• The secured party is the bank with which the
  deposit is maintained
• The debtor, secured party, and the bank have
  agreed in an authenticated record that the bank
  will comply with instructions originated by the
  secured party (even if the debtor retains the
  right to direct the disposition of funds)

Secured party
Agreement
SI
Customer
Account
21
Basic Concepts Control
9-104. A secured party has control of a deposit
account if

• The secured party is the bank with which the
  deposit is maintained
• The debtor, secured party, and the bank have
  agreed in an authenticated record that the bank
  will comply with instructions originated by the
  secured party (even if the debtor retains the
  right to direct the disposition of funds)

Secured party
Agreement
SI
Customer
Account
9-342. A bank that has entered into such an
agreement is not required to confirm the
existence of the agreement . . . unless requested
to do so by its customer
22
Basic Concepts Control
9-104. A secured party has control of a deposit
account if

• The secured party is the bank with which the
  deposit is maintained
• The debtor, secured party, and the bank have
  agreed in an authenticated record that the bank
  will comply with instructions originated by the
  secured party (even if the debtor retains the
  right to direct the disposition of funds)
• The secured party becomes the banks customer
  (4-104(a)(5))

Secured party
Account
SI
Debtor
23
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
Customer
Account
24
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
Customer
Account
25
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
(3) Secured is customer
Debtor
Account
26
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
(3) Secured is customer
Debtor
Account
Secured (3) beats Secured (1). Bank transferred
the account to (3) Secured.
27
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
(3) Secured is customer
Debtor
Account
Secured (3) beats Secured (1) Secured (1) beats
Secured (2). Bank shouldnt have to check its
records.
28
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
(3) Secured is customer
Debtor
Account
Secured (3) beats Secured (1) Secured (1) beats
Secured (2) Otherwise all controlling secured
parties rank by time
29
Priority in Deposit Accounts, 9-327
Assume three security interests in the same
deposit account
(2) Secured is third party
Agreement
SI
(1) Secured is bank
(3) Secured is customer
Debtor
Account
Secured (3) beats Secured (1) Secured (1) beats
Secured (2) Otherwise all controlling secured
parties rank by time All controlling secured
parties beat secured parties claiming merely as
proceeds
30
(No Transcript)
31
(No Transcript)
32
(No Transcript)
33
(No Transcript)
34
(No Transcript)
35
(No Transcript)
36
(No Transcript)
37
(No Transcript)
38
(No Transcript)
39
(No Transcript)
40
(No Transcript)
41
(No Transcript)
42
Problem 19.1, page 341

• How does a secured creditor perfect in
• Cash that comes into the cash register?
  9-312(b)(3).
• Possession by an agent who is not the debtor
• Negotiable promissory note? 9-312(a), 9-313(a),
  9-330(d)
• Instrument. Possession is preferred
• Money in a bank account? 9-314(a), 9-104
• Authenticated agreement with the bank or put
  secureds name on the account.
• General Motors share certificates? 9-312(a),
  9-313(a), 9-314(a), 9-328(1), 9-106. Controlling
  secured party is first.
• Keep the indorsed certificate or register the
  transfer with General Motors (preferred over a
  party without control)

43
Problem 19.1, page 341

• How does a secured creditor perfect in
• Promissory notes and security interests in cars?

44
Problem 19.1, page 341

• How does a secured creditor perfect in
• Promissory notes and security interests in cars?
• Chattel paper. 9-312(a), 9-313(a), or 9-314(a)
  and 9-105 if we required the dealer to make the
  paper electronic.

45
Problem 19.1, page 341

• How does a secured creditor perfect in
• Promissory notes and security interests in cars?
• Chattel paper. 9-312(a), 9-313(a), or 9-314(a)
  and 9-105 if we required the dealer to make the
  paper electronic.
• Take possession or make the paper electronic

46
Problem 19.2, page 342
Watson Family Restaurants
Canards
500K contract
Franchise
47
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise
48
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?

49
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47).

50
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47). Take possession.

51
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47). Take possession.
• Account? 9-102(a)(2).

52
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K contract
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47). Take possession.
• Account? 9-102(a)(2). File financing statement.

53
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K secured
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47). Take possession.
• Account? 9-102(a)(2). File financing
  statement.
• b. Assume the Canards have a security interest in
  the franchise. How does Casa Grande perfect in
  what the Canards have?

54
Problem 19.2, page 342
Casa Grande
500K contract
300K loan
Watson Family Restaurants
Canards
500K secured
Franchise

• How should Casa Grande perfect? What is the
  nature of the collateral?
• Instrument? 9-102(a)(47). Take possession.
• Account? 9-102(a)(2). File financing
  statement.
• b. Assume the Canards have a security interest in
  the franchise. How does Casa Grande perfect in
  what the Canards have? Chattel paper? Take
  possession and file.

55
Problem 19.3, page 342
Garp Associates
60K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
56
Problem 19.3, page 342
Garp Associates
Casa Grande
60K loan
300K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
57
Problem 19.3, page 342
Garp Associates
Casa Grande
60K loan
300K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
Can Casa Grande perfect in this instrument by
filing?
58
Problem 19.3, page 342
Garp Associates
Casa Grande
60K loan
300K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
Can Casa Grande perfect in this instrument by
filing? Yes, but loses to a later SI perfect
by possession
59
Problem 19.3, page 342
Garp Associates
Casa Grande
60K loan
300K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
Can Casa Grande perfect in this instrument by
filing? Yes, but loses to a later SI perfect
by possession Can Casa Grande perfect in this
instrument by possession?
60
Problem 19.3, page 342
Garp Associates
Casa Grande
60K loan
300K loan
Instrument
Watson Family Restaurants
Canards
Instrument
Franchise
Can Casa Grande perfect in this instrument by
filing? Yes, but loses to a later SI perfect
by possession Can Casa Grande perfect in this
instrument by possession? Garp becomes an
agent of Casa Grande (agrees to act on Casa
Grandes behalf). 9-313 Comment 3 Garp
authenticates a record acknowledging that it
holds on Casa Grandes behalf. 9-313(c)
61
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?

62
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home?

63
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)?

64
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?

65
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)?

66
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?

67
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).

68
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)?

69
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)? Possession?

70
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)? Possession? No,
  9-313(b)

71
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)? Possession? No,
  9-313(b)
• Solid gold ingot and 20 unset diamonds worth 20
  million? 9-309(1)?

72
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)? Possession? No,
  9-313(b)
• Solid gold ingot and 20 unset diamonds worth 20
  million? 9-309(1)?
• Computer equipment used to review stock
  quotations? 9-309(1)?

73
Problem 19.4, page 342

• Savings is lending to Kettering against this
  collateral. No UCC financing statements are on
  file. How could the collateral still be
  encumbered?
• 40,000 mobile home? 9-309(1)? How do we check
  that?
• 2.5 million rare book collection on display in
  library of Congress? 9-309(1)? Possession?
  How do we check for possession? 9-313(g).
• Mercedes-Benz? 9-309(1)? Possession? No,
  9-313(b)
• Solid gold ingot and 20 unset diamonds worth 20
  million? 9-309(1)?
• Computer equipment used to review stock
  quotations? 9-309(1)? How do we check what it
  was bought for?

74
Problem 19.5, page 343
Adam
Janet
Lawsuit
75
Problem 19.5, page 343
Will
100K loan
Security interest
Adam
Janet
Lawsuit
76
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit
77
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization

78
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization

79
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no

80
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no
• The claimant is an individual and the claim
• (i) arose in the course of the claimants
  business or profession

81
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no
• The claimant is an individual and the claim
• (i) arose in the course of the claimants
  business or profession and no

82
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no
• The claimant is an individual and the claim
• (i) arose in the course of the claimants
  business or profession and no
• (ii) does not include damages arising out of
  personal injury to or the death of an individual.
  

83
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim?
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no
• The claimant is an individual and the claim
• (i) arose in the course of the claimants
  business or profession and no
• (ii) does not include damages arising out of
  personal injury to or the death of an individual.
  yes?

84
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit

• 9-102(a)(13). Commercial tort claim means a
  claim arising in tort with respect to which
• The claimant is an organization or 1-201(25),
  no
• The claimant is an individual and the claim
• (i) arose in the course of the claimants
  business or profession and no
• (ii) does not include damages arising out of
  personal injury to or the death of an individual.
  yes?

85
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12).
86
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12).
87
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect?
88
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case?
89
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file
90
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2).
91
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of?
92
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42).
93
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42). Yes (contract claim).
94
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42). Yes (contract claim). Payment
intangible? 9-102(a)(61).
95
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42). Yes (contract claim). Payment
intangible? 9-102(a)(61). 9-309(2).
96
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42). Yes (contract claim). Payment
intangible? 9-102(a)(61). 9-309(2). What
should we do?
97
Problem 19.5, page 343
Will
What should Will do to perfect his security
interest in this lawsuit? Is this a commercial
tort claim? No
100K loan
Security interest
Adam
Janet
Lawsuit
What kind of collateral is the lawsuit? Non-comme
rcial tort claim? 9-109(d)(12). If yes, how do
we perfect? Bluxome Street case? Notice in
court file Account? 9-102(a)(2). No? For
property disposed of? General intangible?
9-102(a)(42). Yes (contract claim). Payment
intangible? 9-102(a)(61). 9-309(2). What
should we do? UCC filing, notice in court file
98
Problem 19.6, page 343
Sally and Joe enter into an oral security
agreement. Sally takes possession of the
collateral.
Sally
5K loan
Security interest
Joe
99
Problem 19.6, page 343
Sally and Joe enter into an oral security
agreement. Sally takes possession of the
collateral. Can Sally be perfected with
nothing in writing? 9- 310(b),
9-203(b)(3)(B).
Sally
5K loan
Security interest
Joe
100
Problem 19.6, page 343
Sally and Joe enter into an oral security
agreement. Sally takes possession of the
collateral. Can Sally be perfected with
nothing in writing? 9- 310(b),
9-203(b)(3)(B). Yes
Sally
5K loan
Security interest
Joe
101
Problem 19.6, page 343
Sally and Joe enter into an oral security
agreement. Sally takes possession of the
collateral. Can Sally be perfected with
nothing in writing? 9- 310(b),
9-203(b)(3)(B). Yes
Sally
5K loan
Security interest
Trustee
Joe
Is Sally in possession if the collateral is in
her apartment and Sally is a thousand miles
away?
102
Problem 19.6, page 343
Sally and Joe enter into an oral security
agreement. Sally takes possession of the
collateral. Can Sally be perfected with
nothing in writing? 9- 310(b),
9-203(b)(3)(B). Yes
Sally
5K loan
Security interest
Trustee
Joe
Is Sally in possession if the collateral is in
her apartment and Sally is a thousand miles
away? If Joes mother is staying in the
apartment?