Law > STUDY GUIDE > Commercial Law E&E Outline Secured Transactions E&E Chapter 3 -8: (All)

Commercial Law E&E Outline Secured Transactions E&E Chapter 3 -8:

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Commercial Law E&E Outline - Professor Henry, Spring 2016 Secured Transactions E&E Chapter 3: Attachment  E&E Chapter 5 Introduction to Perfection and Classification of Collateral  A security interest granted by the debtor in favor of the secured party paving attached to any specific piece of collateral, the interest is as of the moment of attachment effective as between those two parties. o The secured party will have the right, should the debtor fair to meet its underlying obligation, of going against the collateral; the creditor will have an opportunity to get paid what it is owed by taking control of the collateral.o The secured party needs more than attachment to protect its interest to as great an extent as article 9 allows. The secured party needs to be sure that the security interest has not only attached but that is has been perfected as well. o Perfection is the mechanism through which the secured party asserts its rights in the collateral, should push come to shove, against third parties who might come into the picture and make some claim of their own against that particular bit of the debtor’s property.  There are different classes of persons who can take priority over an unperfected security interest – this is why it is far from ideal for a secured creditor to hold a security interest that is attached but is not perfected.  A perfected security interest will give the secured party a favored position should the debtor go into bankruptcy. o How does a secured party attain perfection of their security interests?  What means of perfection will be necessary or even possible and the exact step for carrying them out come to depend in Article 9 on what is referred to as the classification of the collateral by type – very important to classify the collateral correctly.  Classification of Collateral o At the heart of every secured transaction sits the collateral itself. o Identify the collateral as precisely as you can –  Identify it in real terms: collateral is real stuff; the machinery or steel or license to produce or the check delivered in exchange for something. Article 9 provides the main classification scheme.  All collateral can and will fit within one and only one definition. E&E Chapter 7 Perfection by filing: where to file and how to file  Communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing o You can request an acknowledgement of filling o Only by flling with the correct office as called under article 9, will filing be effective ot perfect a security interest or agricultural lien. How do you determine what office is the correct one to file at? o What office of the state, the central office or local one, should the filling be presented? o In which state is the filling to be made?  9-501(a) where within a state must one file? Unless covered under (a)(1), most often it will be the office of the Secretary of State – the central office run by the state- “central filling”.  In what state should the financial statement be filed? Which state law will govern o 9-301 general

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