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151 cards

1To determine the governing law for perfection, the effect of perfection or nonperfection, and priority of a security interest, which two primary jurisdictions should a creditor consult first?
2Under Article 9 of the UCC, what is the location of an individual debtor?
3Under Article 9 of the UCC, what is the location of a debtor that is a registered organization with the state?
4Under Article 9 of the UCC, what is the location of a debtor that is an unregistered organization and has more than one place of business?
5If the debtor and the collateral consisting of goods are located in different states, will the jurisdiction of the debtor’s location provide the law for perfecting a security interest?
6Does a secured creditor generally have priority over an unsecured creditor?
7How does the UCC determine a secured party’s priority date?
8Under Article 9 of the UCC, does a lien creditor generally have priority over unperfected secured creditors and general unsecured creditors?
9How is priority determined between a lien creditor and a perfected secured creditor with competing interests in the same collateral?
10A secured creditor perfected its security interest by filing an appropriate financing statement on March 1. A general unsecured creditor became a lien creditor on April 1 of the same year. Both the security interest and the lien concerned the same collateral. Does the secured creditor have priority over the lien creditor?
11On January 1, a bank extended a debtor a $50,000 loan, taking a security interest in the debtor’s equipment, inventory, and accounts pursuant to an authenticated security agreement. On February 1, a general unsecured creditor went through the appropriate judicial process and became a lien creditor of the debtor. On March 1, the bank filed an appropriate financing statement, thus perfecting its security interest. Does the bank have priority as against the debtor’s equipment, inventory, and accounts?
12On January 1, a bank filed an appropriate financing statement and entered an authenticated security agreement with a debtor, granting a security interest in all of the debtor’s inventory and equipment. The bank had not yet extended money to the debtor, as the parties were still working out the details of the repayment plan. On February 1, a general unsecured creditor went through the appropriate judicial process and became a lien creditor. On March 1, the bank loaned the debtor $50,000, at which point the bank’s security interest attached and became perfected due to the earlier financing statement.Does the bank have priority?
13On January 1, a debtor borrowed $100,000 from a bank pursuant to a security agreement granting the bank an enforceable security interest in the debtor’s equipment. The bank did not perfect its security interest at that time. On February 1, a company loaned the debtor $10,000 on an unsecured basis. On April 1, the company went through the state process to obtain a lien on the debtor’s equipment.Assuming the company meets the definition of a lien creditor, does the company have priority to the debtor’s equipment?
14What does the term perfected mean in Article 9 of the UCC?
15In general, what are the five main ways for a secured party to perfect a security interest in collateral?
16What is the most common method of perfecting a security interest?
17How does the UCC determine the priority date for a secured party who has filed a financing statement?
18What three main pieces of information must a financing statement set forth to be properly completed?
19A fishing company borrowed money from two secured creditors. Both received a security interest in the company’s personal property and perfected their security interests by filing financing statements. Both creditors also executed an intercreditor agreement appointing a third party as their representative. Each financing statement listed the company’s (now, the debtor’s) legally correct name and address, the secured creditor’s name as that of the third party, and the third party’s correct address. It also listed the collateral as “all assets.” Do these financing statements list all required information?
20What is the proper name of a debtor who is an individual?
21What is the proper, legal name of a debtor that is a registered organization?
22If a debtor is an unregistered organization, how must the financing statement identify the debtor?
23Under Article 9 of the UCC, what is a seriously misleading financing statement?
24A clothing store filed paperwork with the state to change its name to add the letters “LLP.” This reflected that the store had recently registered its business with the state to enjoy limited liability. The store’s primary creditor had a security interest in all its “inventory, whether now owned or later acquired.” The creditor filed a financing statement listing both the name of the store and the name of the store’s sole equity owner. The creditor did not discover the addition of LLP to the business name for six months. During this time, all the collateral was sold and replaced. The security interest was perfected when the creditor first filed the financing statement.Is the financing statement seriously misleading in light of the debtor’s name change?
25What information must a financing statement provide about a creditor?
26Does a financing statement need to describe the collateral it covers as specifically as the security agreement?
27On January 1, a debtor received a $10,000 loan from a lender. The lender took a security interest in the debtor’s equipment pursuant to a security agreement. The lender then filed an appropriate financing statement listing equipment as the covered collateral. A few months later, the lender loaned the debtor an additional $5,000 and took a security interest in the debtor’s accounts pursuant to another security agreement. The lender did not file another financing statement. The lender has an enforceable security interest in the debtor’s equipment and another enforceable security interest in the debtor’s accounts. Does the lender have a perfected security interest in both the equipment and the accounts?
28On January 1, a debtor received a $10,000 loan from a lender. The lender took an enforceable security interest in the debtor’s equipment pursuant to a security agreement. The lender then filed an appropriate financing statement listing equipment as the covered collateral. A few months later, the lender loaned the debtor an additional $5,000, again taking an enforceable security interest in the debtor’s equipment pursuant to a security agreement. The lender did not file another financing statement. Does the lender have a perfected security interest in all the debtor’s equipment for $15,000?
29For purposes of perfecting a security interest, where must a financing statement be filed?
30What are the four main duties of a UCC filing office with regard to all financing statements and other records filed in the filing office?
31For how long is a properly filed and completed financing statement effective to perfect a security interest?
32When must a continuation statement be filed for a financing statement to remain effective for more than five years after filing?
33How long does a secured creditor have to amend its financing statement if a debtor changes its name or a new debtor takes collateral subject to a security interest?
34Two corporations in the same state merged. The surviving entity acquired all of the acquired entity’s assets. By contract and under state law, the surviving entity became a new debtor under the acquired entity’s prior security agreements and took its assets subject to any prior security interests in them. Because of the transfer of assets, any financing statements filed to perfect security interests in the acquired entity’s assets became seriously misleading. What must the affected secured creditors do to maintain perfection of their security interests?
35If a security interest is perfected by filing under one state’s laws, and a debtor that is not a registered organization later changes its location to a different state, how long does the security interest remain perfected?
36A debtor was a general partnership with its place of business in State A. The debtor granted a security interest in its equipment to a lender. The lender perfected this interest by filing a financing statement in State A. Two years later, the debtor moved its place of business to State B. Assuming the lender’s interest would have remained perfected in State A for three more years, how long after the debtor’s relocation does the lender have to perfect its interest in State B?
37If a security interest is perfected by filing under one state’s laws, and a debtor that is a registered organization later changes its location to a different state, how long does the security interest remain perfected?
38A debtor was a registered organization in State A. After a significant change in the board of directors, the debtor was reincorporated in State B. Several of the debtor’s secured creditors have perfected their security interests by filing proper financing statements in State A. At most, how long do the secured creditors have to take any needed action to continue their perfection now that the debtor has reincorporated in State B?
39What are the two primary types of assignments for financing statements?
40What happens to a financing statement once a debtor has fulfilled its obligations to the secured party?