CHAPTER 38: SECURED TRANSACTIONS

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CHAPTER 38 SECURED TRANSACTIONS
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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

• Coverage of Article 9
• Exclusions from Article 9
• Classifications of Collateral
• Tangible Goods
• Documentary Collateral
• Intangible Property

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SCOPE OF ARTICLE 9

• Tangible Goods
• Consumer goods
• Equipment
• Farm products
• Inventory
• Documentary Collateral
• Chattel paper
• Documents of title
• Instruments

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SCOPE OF ARTICLE 9

• Intangible Collateral
• Accounts
• General intangibles

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CREATION OF A SECURITY INTEREST

1. Introduction
2. Security Agreement
3. Debtors Rights in the Collateral
4. Creditor Gives Value

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PERFECTION OF A SECURITY INTEREST

• Essence of a Security Interest
• Methods of Perfection
• Filing of a Financing Statement
• Possession
• Attachment
• PMSI in Consumer Goods
• 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

• Generally
• Secured Party vs. Buyers of Collateral
• Buyers in the Ordinary Course of Business
• Buyers of Consumer Goods

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PRIORITY ISSUES

• Secured Party vs. Secured Party
• General Rule First-in-Time
• PMSI in Inventory Collateral
• PMSI in Non-inventory Collateral
• Secured Party vs. Lien Creditors

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DEBTORS DEFAULTRIGHTS 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. Debtors General Remedies

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CHAPTER 38 SECURED TRANSACTIONS