secured credit cards.txt

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zk
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224807
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secured credit cards.txt
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2013-06-23 21:23:05
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secured credit cards
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secured credit cards
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  1. attachment?
    VCR. Value; contract (security agreement; rights in collateral
  2. consignments that must comply w/ art 9
    over 1k AND consigner did not use the goods for personal family or household purposes AND potentially deceiptive consignee
  3. who is a potentially deceptive consignee
    deals w/ goods of that kind under a name other than the consignee; not an auctioneer; & not generally known by consignees creditors to be substanitally engage in selling consigned goods
  4. disguised lease
    lesee cannot terminate the lease AND (a) equal to or greater than the remaining economic life, (b) lesee owns property at end of lease term, (c) lessee has the option to purchase fornominal consideration at the end of the lease term
  5. to be a farm product, must
    (a) in possession of the farmer engaged in farming operations & (b) in an unmanufactured condition
  6. instruments represent
    money
  7. documents are
    written or electronic representations of goods - documents of title under art 7
  8. warehouse receipt
    represents goods in storage
  9. bill of lading
    represents goods in transit
  10. chattel paper represents two things
    monetary obligation (like a promissory note) & a security interest
  11. cash can only be collateral if
    it is proceeds
  12. description of collateral in a security agreement
    must rznably describe the property
  13. can perfect by control for
    investment property, nonconsumer deposit accounts, electronic documents, & electronic chattel paper
  14. after acquired property clause & consumer goods
    an after-acquired property clause will only be effective re: consumer goods for those consumer goods that are acquired within 10 days of the security agreement
  15. these may not be perfected by possession
    accounts; deposit accounts; non-negotiable documents; electronic documents; electronic chattel paper; general intangibles
  16. twenty day exception for
    instruments, negotiable documents, certificated securities
  17. these may not be perfected by filing
    deposit accounts, money
  18. fin statemennt requirements
    names of debtor/creditor; addresses of debtor/creditor; debtor's authorization in an authenticated record; description of the collateral (can be broader/super-generic)
  19. errors in financing statement are escused so long as they are not
    seriously misleading
  20. changes in the debtor's name
    perfection continues in the collateral that the debtor has at the time of the name change. perfection will also continue for property that is acquired within 4 months of the name change. However, for property acquired after the 4 month period, perfection ends if not refiled under new name within the 4 month period.
  21. a filing statement is effective for
    5 yrs from the date of the filing
  22. continuation statements must be filed
    within 6 months of the expriation date
  23. termination statements
    required for consumer goods. must be filed by creditor within 20 days after debtor written demand or w/o demand within 1 month after this is no outstanding secured obligation or commitment to make advance. For NONCONSUMER GOODS, only upon debtors request. creditor must provide the debtor within 20 days of demand.
  24. automatic perfection
    consumer goods that are not either certificate of title items or fixtures; assignment of accounts; sale of promissory notes
  25. temporary automatic perfections
    proceeds (autoperfected for 20 days from debtors receipt); new value for instruments, negotiable documents, & certified securities (20 day grace period); delivery fo instrument, noegitable document, or cerfieid security to debtor (20 days again)
  26. generally, perfection in proceeds
    will continue for 20 days. BUT there are exceptions
  27. the original security interest will remain perfected by the f.s. if the proceeds of the collateral are also property for which a f.s. would be filed
    in the same office as the original collateral.
  28. the original security interest will continue in proceeds if they are identifiable
    cash proceeds
  29. if the same office rule does not apply & it is not identifiable cash proceeds then
    the creditor might need to take further action to perfect
  30. which state's art9 are you going to use to determine whether something is perfected?
    law of the state where the debtor is located. if individual, look to the principal residence. if registered organization, look to the law of the state where it is organized.
  31. PSMI exception to the general rule that the first to file/perfect wins
    if one creditor has a PMSI in goods (other than inventory or livestock) so long as it is perfected (1) when debtor receives POSSESSION of the collateral or (2) WITHIN 20 DAYS of when the debtor receives possession
  32. PMSI in inventory
    in order to have PMSI superpriority in inventory, the creditor must be perfected when the debtor recieves the property and the conflicting SI holders must be given proper notice. Proper notice is authenticated notice to those who have filed, explaining the PMSI status, describing the collateral, all before possession occurs. Good for 5 yrs, just like a regular financing statement.
  33. if the secured party is unperfected at the time of purchase of collateral, the buyer will prevail so long as
    the buyer gives value; buyer receives delivery; buyer doesn't know about the security interest
  34. buyer in the ordinary course of business
    although usually a buyer will take subject to a security interest, this is the BIG exception. A buyer in the ordinary course of business will prevail over a secured creditor in certain circumstances. There must be (1) good faith (subjective/objective); (2) no knowledge of security interest VIOLATION; (3) not farm products; (4) ordinary purchase (i.e. from a person in the business selling goods of that kind); (5) security interest must have been created by the seller; (6) creditor not perfected by prior owners of the collateral
  35. consumer-consumer exception (garage sale rule)
    a purchaser will prevail if it is consumer goods in both the buyer & sellers hands; buyer has no knowledge of security interest; buyer pays value; creditor not perfected by possession; & creditor's interest is UNFILED
  36. future advances
    will only work if the secured creditor doesn't have knowledge of the purchase or if 45 days haven't elapsed from the date of the purchase
  37. a HDC will prevail over
    earlier perfected interests in a negotiable instrument
  38. a statutory mechanics lien prevails over a secured creditor if
    (1) person furnished services or materials w/r/t the goods covered by security interest; (2) furnishing was in ordinary course of business; (3) collateral is in the possession of the statutory lien holder
  39. you lose your interest in ordinary building materials once
    construction occurs
  40. something is a fixture if
    it can be removed but some damage to the property will occur as a result
  41. a secured party may beat the holder of a mortgage if
    perfected before RE interest recorded; perfect w/ a fixture filing (describing property in the right mortgage office)
  42. purchase money secured credity perfected by fixture filing
    can previal if perfected within 20 days of becoming a fixture; competing RE interest is not a construction mortgage

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