All flashcards
151 cards
121What are the requirements for PMSI in a fixture to confer superpriority as against a party with an interest in the underlying real property?
122A bank held a properly recorded mortgage on a debtor’s office building. The debtor needed a central air-conditioning system but lacked the capital to purchase it outright. Accordingly, the debtor approached a retailer, and the retailer sold the air-conditioning system to the debtor on credit. In return, the debtor gave the retailer a security interest in the system to secure payment of the purchase price. The parties executed a proper security agreement. The next day, the retailer installed the air-conditioning system and filed an appropriate fixture filing to perfect its security interest, which was a PMSI. The air-conditioning system became a fixture upon installation.Does the retailer have priority to the air-conditioning system?
123What is the first-in-time exception to the general rule of priority regarding security interests in fixtures?
124In what two ways may a person with an interest in real property consensually subordinate that interest to a security interest in a fixture annexed to the realty?
125May a security interest exist in ordinary building materials incorporated into an improvement on land?
126May a secured party make a fixture filing as a mere precaution?
127In secured-transactions law, what is an accession?
128If a good that is collateral becomes an accession, what is the effect on the security interest?
129A debtor used computers to provide educational-technology services. A bank had an attached, perfected security interest in certain hardware that the debtor added aftermarket to its computers. The hardware remained identifiable after it was added to the computers. The computers and the hardware are goods. Does the bank have an attached perfected security interest in the aftermarket hardware once it is added to the computers?
130How does the UCC determine priority between a security interest in an accession and a security interest in the whole perfected through a certificate-of-title system?
131A debtor granted a bank an enforceable security interest in its equipment (i.e., goods), including the vehicles that the debtor’s employees used to travel to trainings throughout the state. The bank’s security interest was perfected, because it was properly noted on the title certificate of each vehicle. This complied with the state’s certificate-of-title system. Later, a tire depot sold the debtor new tires (also goods) on credit, and the debtor granted a security interest in the tires to the tire depot. The tire depot installed the tires on the vehicles and immediately perfected its security interest in the tires.Does the tire depot have priority in the tires?
132In secured-transactions law, what are commingled goods?
133If a good that is collateral becomes a commingled good, what is the effect on the security interest?
134How does the UCC determine priority if more than one security interest attaches to a product or mass of commingled goods that previously existed as noncommingled goods?
135A debtor was a cake shop. A bank had a security interest in the debtor’s eggs and flour, which was perfected on January 15. The eggs and flour had a value of $1,000 and secured a debt of $1,000. On January 16, the debtor used the flour and eggs to make multiple cakes, which together had a value of $2,000. The eggs and flour became commingled goods. A finance company (the company) obtained a security interest in the debtor’s cakes, perfected on February 1. The company was owed $2,000. How much value is subject to each security interest?
136A farmer installed a new engine in his truck. The next day, the farmer used this truck to move wheat to the base of a community grain elevator and promptly unloaded the wheat into the grain elevator. The wheat was no longer separately identifiable, because it was combined with large quantities of grain from other farmers.How are the farmer’s truck engine and the wheat classified under Article 9 of the UCC?
137What is a subordination agreement?
138On January 1, a debtor borrowed $100,000 from a bank. The bank took an enforceable security interest in the debtor’s accounts and immediately perfected. On February 1, the debtor borrowed $50,000 from a credit company (the company), which perfected a security interest in the debtor’s accounts. Later, the bank agreed to subordinate its security interest to the company’s. On March 1, the debtor borrowed $25,000 from a lender, which immediately attached and perfected a security interest in the debtor’s accounts. The debtor defaulted on all three loans having paid no principal. The debtor’s accounts were valued at $125,000.How much will each creditor receive from the accounts?
139Under Article 9 of the UCC, may anyone besides the person entitled to priority effectively agree to subordinate the person’s claim?
140Does an assignee of an account generally take the assignment subject to the defenses and claims of an account debtor?
141A bank perfected a security interest in equipment by filing a financing statement listing two debtors, an individual and a small business. Two years later, the bank decided to remove the individual from the financing statement. The bank had its agent file a proper, authorized termination statement that identified the filing number of the first financing statement. The bank then perfected again by filing a new financing statement listing only the small business as a debtor. What is the bank’s priority date with respect to the equipment?
142Under what circumstances is an assignee bound to contract modifications made by the account debtor and assignor?
143If an account debtor receives authenticated notice of an assignment, whom should the account debtor pay to fulfill his obligations?
144Under what circumstances is authenticated notice of an assignment to an account debtor ineffective?
145May an account debtor ever continue to pay the assignor after receiving notification of an assignment?
146Are provisions restricting the assignment of accounts, chattel paper, payment intangibles, and promissory notes effective?
147May a secured party amend a financing statement without losing its priority date?
148Once a financing statement is filed, may a person release a portion of the collateral that is covered by the financing statement by filing an amendment?
149Once a debtor satisfies its secured obligations toward a party whose security interest is perfected by filing, how can the debtor ensure that the relevant financing statement is terminated?
150Does a secured party generally have a duty to provide a termination statement absent a demand from a debtor?
151In what circumstances must a secured party file a termination statement even absent an authenticated demand from the debtor?