Source
Loading...
U.C.C. § 9-201(a) (2010).
The field below filters the flashcards in this list as you type. The number of matching flashcards is announced as you type.
All flashcards
56 cards
1In general, is a security agreement between a debtor and a secured creditor effective against purchasers of the collateral and other creditors of t...
In general, is a security agreement between a debtor and a secured creditor effective against purchasers of the collateral and other creditors of the debtor?2A debtor and a bank entered into an enforceable security agreement. The granting clause stated that the bank was granted a security interest in the...
A debtor and a bank entered into an enforceable security agreement. The granting clause stated that the bank was granted a security interest in the debtor’s equipment, inventory, and accounts. Later, the debtor became insolvent, being unable to meet its financial obligations. The debtor had several creditors other than the bank with claims against the equipment, inventory, and accounts.Is the security agreement between the debtor and the bank effective against the debtor’s creditors other than the bank?3If a state or federal law regulates consumer-goods transactions that would ordinarily fall within the scope of Article 9 of the Uniform Commercial ...
If a state or federal law regulates consumer-goods transactions that would ordinarily fall within the scope of Article 9 of the Uniform Commercial Code (UCC), does the state or federal law other than Article 9 control?4Generally, for a security interest to attach to collateral and become enforceable, must the debtor assign title in the collateral to the secured pa...
Generally, for a security interest to attach to collateral and become enforceable, must the debtor assign title in the collateral to the secured party?5A debtor, a taxi company, needed to acquire new vehicles. To obtain a loan for the needed cash, the debtor agreed to grant a bank a security intere...
A debtor, a taxi company, needed to acquire new vehicles. To obtain a loan for the needed cash, the debtor agreed to grant a bank a security interest in its existing and later-acquired vehicles. The debtor also agreed that the bank would hold title to each discrete vehicle until the loan was paid in full. To that end, the parties entered an enforceable security agreement reserving title in each vehicle to the bank.Did the bank perfect its security interest in the debtor’s fleet of cars simply by virtue of the title-reservation clause?6In general, when does a security interest attach to collateral?
In general, when does a security interest attach to collateral?7In general, how does a security interest in collateral become enforceable?
In general, how does a security interest in collateral become enforceable?8For a security interest to attach and become enforceable, must a debtor own the assets it is using as collateral?
For a security interest to attach and become enforceable, must a debtor own the assets it is using as collateral?9A lender agreed to provide a debtor with a loan, but only for sufficient collateral. The debtor owned no valuable property but approached a family ...
A lender agreed to provide a debtor with a loan, but only for sufficient collateral. The debtor owned no valuable property but approached a family member who owned expensive jewelry. The family member agreed to let the debtor use the jewelry as collateral for the loan. Does the debtor have sufficient rights in, or power over, the jewelry for the lender’s security interest to attach to it?10Does Article 9 govern whether a debtor has rights in the collateral, as required for a security interest to attach?
Does Article 9 govern whether a debtor has rights in the collateral, as required for a security interest to attach?11In general, how specifically must a security agreement describe the collateral to meet the requirement for attachment that the security agreement p...
In general, how specifically must a security agreement describe the collateral to meet the requirement for attachment that the security agreement provide a description of the collateral?12A lender agreed to lend a debtor $25,000. To secure this loan, the debtor gave the lender physical possession of several valuable pieces of art own...
A lender agreed to lend a debtor $25,000. To secure this loan, the debtor gave the lender physical possession of several valuable pieces of art owned by the debtor. The debtor agreed that the lender could sell the art to cover the obligation if the debtor did not repay the loan on time. While the art was in the lender’s possession, the lender advanced the debtor $25,000. The debtor signed a promissory note detailing the repayment term and describing the particular art that the lender possessed and could sell to cover the obligations.Has the lender attached a security interest to the art?13Must a security agreement describe collateral that is not a certificated security and that is in the possession of the secured party?
Must a security agreement describe collateral that is not a certificated security and that is in the possession of the secured party?14Must a security agreement describe collateral that is electronic chattel paper, investment property, a deposit account, or a letter-of-credit right...
Must a security agreement describe collateral that is electronic chattel paper, investment property, a deposit account, or a letter-of-credit right in the secured party’s control?15To create an enforceable security interest, is it always a requirement that the debtor authenticate a writing (usually a security agreement) that d...
To create an enforceable security interest, is it always a requirement that the debtor authenticate a writing (usually a security agreement) that describes the collateral?16A debtor held several deposit accounts, which were maintained at a bank. The debtor and the bank verbally agreed that the bank would extend a $100,...
A debtor held several deposit accounts, which were maintained at a bank. The debtor and the bank verbally agreed that the bank would extend a $100,000 loan, with the debtor’s deposit accounts at the bank serving as collateral. No part of this agreement was memorialized in any writing. Nevertheless, the bank transferred the $100,000 loan proceeds into one of the debtor’s deposit accounts at the bank. The bank thus gave value to the debtor, and the debtor had rights in the deposit accounts.Does the bank have a security interest that is attached to the deposit accounts?17When does a person become bound as a debtor by a security agreement entered into by another person?
When does a person become bound as a debtor by a security agreement entered into by another person?18If a new debtor becomes bound to another person’s enforceable security agreement, does the security interest become enforceable against the new deb...
If a new debtor becomes bound to another person’s enforceable security agreement, does the security interest become enforceable against the new debtor without the need for another security agreement?19Two corporations merged, and the result was that the companies were combined. The first corporation was organized as the successor, and the second ...
Two corporations merged, and the result was that the companies were combined. The first corporation was organized as the successor, and the second corporation ceased to exist.Assuming that typical state corporation law applies, is the first corporation bound by any security agreements entered into by the second corporation?20One corporation acquired another. By operation of state law, the acquiring corporation became responsible for the acquired corporation’s debts and ...
One corporation acquired another. By operation of state law, the acquiring corporation became responsible for the acquired corporation’s debts and other contractual obligations. How does Article 9 of the Uniform Commercial Code (UCC) classify the acquiring corporation regarding the acquired corporation’s secured obligations?21In general, how may a secured party give value to a debtor for purposes of satisfying the requirements of attachment?
In general, how may a secured party give value to a debtor for purposes of satisfying the requirements of attachment?22A debtor approached a bank and asked for a 10-year loan of $100,000. The bank agreed to consider the loan if the debtor could provide sufficient co...
A debtor approached a bank and asked for a 10-year loan of $100,000. The bank agreed to consider the loan if the debtor could provide sufficient collateral to secure repayment. Accordingly, the parties entered into an authenticated security agreement that reasonably described, and granted as collateral, certain of the debtor’s assets that the bank deemed sufficient. At that point, the bank had not yet made the loan or promised to make the loan.Has a security interest in the bank’s favor attached to the debtor’s collateral?23If a security interest has attached to collateral, does this give the secured party any rights in the proceeds of the collateral?
If a security interest has attached to collateral, does this give the secured party any rights in the proceeds of the collateral?24What is an after-acquired property clause?
What is an after-acquired property clause?25A debtor, a seller of fine jewelry, wanted to borrow money from a bank. The bank wanted collateral. The debtor expected to receive a shipment of di...
A debtor, a seller of fine jewelry, wanted to borrow money from a bank. The bank wanted collateral. The debtor expected to receive a shipment of diamonds in four months. Under applicable commercial law, the debtor had no interest in the diamonds at that point, but the debtor would own them once the shipment arrived. Nevertheless, the bank loaned the debtor $100,000 before the debtor received the diamonds. The parties executed a security agreement stating, in part, “[The debtor] grants a security interest in all of its inventory, equipment, accounts, and general intangibles, including, but not limited to, the certain shipment of diamonds expected in four months.”Have the debtor and the bank created an enforceable security interest in the diamonds as of the signing of the agreement?26A debtor wanted to borrow money from a bank. The bank wanted collateral. The debtor expected to receive a shipment of diamonds in four months. Unde...
A debtor wanted to borrow money from a bank. The bank wanted collateral. The debtor expected to receive a shipment of diamonds in four months. Under applicable law, the debtor had no interest in the diamonds at that point but would own them once the shipment arrived. Nevertheless, the bank loaned the debtor $100,000 before the debtor received the diamonds. The parties executed a security agreement stating, in part, “[The debtor] grants a security interest in all of its inventory, equipment, accounts, and general intangibles, including, but not limited to, the certain shipment of diamonds expected in four months.” Four months later, with the loan still outstanding and the security agreement still effective, the debtor received the shipment of diamonds.As of the date the debtor received the diamonds, did the bank have an enforceable security interest in the diamonds?27What is a floating lien?
What is a floating lien?28Must a security agreement include an after-acquired property clause in order to create a floating lien?
Must a security agreement include an after-acquired property clause in order to create a floating lien?29Under what circumstances may a floating lien exist over consumer goods?
Under what circumstances may a floating lien exist over consumer goods?30May a floating lien attach to a commercial tort claim?
May a floating lien attach to a commercial tort claim?31A debtor provided copying and printing services. A bank loaned the debtor $50,000, and the authenticated security agreement provided: “[The debtor]...
A debtor provided copying and printing services. A bank loaned the debtor $50,000, and the authenticated security agreement provided: “[The debtor] hereby grants [the bank] a security interest in [its] equipment, whether now owned or later acquired.” Later, a fire destroyed much of the debtor’s equipment. The debtor believed the fire arose from negligent servicing of the equipment. Accordingly, the debtor decided to sue the company that serviced the equipment. The debtor needed that equipment to carry on its business, and without it, it was unable to meet its obligations to the bank. The bank asserted that it had a security interest in the litigation (and, by extension, its proceeds) due to the after-acquired property clause covering the equipment.Is the bank correct that it has a security interest in the litigation?32What is the purpose of a future-advances clause?
What is the purpose of a future-advances clause?33On January 1, a debtor borrowed $100,000 from a bank. The related security agreement granted the bank an enforceable security interest in the debto...
On January 1, a debtor borrowed $100,000 from a bank. The related security agreement granted the bank an enforceable security interest in the debtor’s equipment. The security interest secured “all debts of [the debtor] to [the bank], now and later outstanding.” On March 1, the bank loaned the debtor another $100,000. Is the loan of March 1 a future advance secured by the January 1 security agreement?34May a debtor use, commingle, or dispose of collateral securing an obligation?
May a debtor use, commingle, or dispose of collateral securing an obligation?35Must a secured party monitor the collateral, or the debtor’s movement of it, for the security interest to remain effective against third parties?
Must a secured party monitor the collateral, or the debtor’s movement of it, for the security interest to remain effective against third parties?36A debtor borrowed $100,000 from a bank. The related security agreement granted the bank a security interest in the debtor’s current inventory. The ...
A debtor borrowed $100,000 from a bank. The related security agreement granted the bank a security interest in the debtor’s current inventory. The bank filed a financing statement perfecting the security interest. The bank did not require the debtor to account for the proceeds of its inventory or to replace any sold or lost inventory. Is the bank’s security interest valid and enforceable against third parties, including other creditors?37May a debtor use collateral to secure an obligation even if that collateral already secures an earlier obligation?
May a debtor use collateral to secure an obligation even if that collateral already secures an earlier obligation?38If a secured party is in possession of collateral, what two duties must it exercise?
If a secured party is in possession of collateral, what two duties must it exercise?39May a secured party in possession of collateral fulfill its duty to use reasonable care by informing the debtor of what must be done to preserve co...
May a secured party in possession of collateral fulfill its duty to use reasonable care by informing the debtor of what must be done to preserve collateral?40A secured creditor was in possession of collateral that a debtor used to secure a prior loan. This collateral included goods that required special ...
A secured creditor was in possession of collateral that a debtor used to secure a prior loan. This collateral included goods that required special care and insurance coverage. The creditor understood that it owed the debtor a duty of reasonable care while the collateral was in its possession, so the creditor contacted the debtor to explain what must be done to preserve the collateral and provided the debtor the opportunity to take the necessary action itself. Has the creditor satisfied its duty of care regarding the collateral in its possession?41A secured creditor was in possession of collateral that a debtor used to secure a prior loan. This collateral included valuable wine that required ...
A secured creditor was in possession of collateral that a debtor used to secure a prior loan. This collateral included valuable wine that required special care and insurance coverage. The creditor understood that it owed the debtor a duty of reasonable care regarding the wine. To that end, the creditor hired a reputable third party to properly store and insure the wine. The secured creditor then sent the bill for these services to the debtor.Has the creditor satisfied its duty of care regarding the collateral in its possession?42If a secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes, or a holder of an agricultural lien, under what...
If a secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes, or a holder of an agricultural lien, under what circumstances does that secured party have a duty to use reasonable care for collateral in its possession?43If a secured party is possession of collateral, what three rights may it exercise?
If a secured party is possession of collateral, what three rights may it exercise?44Does the UCC permit a secured party party in possession or control of collateral create a security interest in that collateral?
Does the UCC permit a secured party party in possession or control of collateral create a security interest in that collateral?45What must a secured party do with any money or funds received from collateral in the secured party’s control?
What must a secured party do with any money or funds received from collateral in the secured party’s control?46If there is no longer any secured obligation, nor any commitment to give value, how long does a secured party have to comply with a debtor’s authen...
If there is no longer any secured obligation, nor any commitment to give value, how long does a secured party have to comply with a debtor’s authenticated demand regarding a deposit account that the secured party controls?47What is a request regarding a list of collateral?
What is a request regarding a list of collateral?48What is a request for an accounting?
What is a request for an accounting?49What is a request regarding a statement of account?
What is a request regarding a statement of account?50Two years ago, a debtor borrowed money from a bank. The security agreement granted the bank a security interest in some of the debtor’s assets. The...
Two years ago, a debtor borrowed money from a bank. The security agreement granted the bank a security interest in some of the debtor’s assets. The bank properly perfected this security interest by filing a financing statement that indicated the collateral as “all assets.” Recently, the debtor wanted to borrow more money, but the bank declined to extend more money. Accordingly, the debtor sought financing from other creditors, including a finance company. The finance company wanted more information about the debtor’s secured obligations to the bank but did not want to rely solely on the debtor’s representations. Does Article 9 of the Uniform Commercial Code (UCC) provide a mechanism for the finance company to obtain this information from the bank on its own?51In general, how long does a secured party have to respond to a debtor’s request for accounting, for a list of collateral, or regarding a statement ...
In general, how long does a secured party have to respond to a debtor’s request for accounting, for a list of collateral, or regarding a statement of account?52What information must a secured party’s response to a debtor’s request for a list of collateral contain?
What information must a secured party’s response to a debtor’s request for a list of collateral contain?53What information must a secured party’s response to a debtor’s request for an accounting contain?
What information must a secured party’s response to a debtor’s request for an accounting contain?54What information must a secured party’s response to a debtor’s request regarding a statement of account contain?
What information must a secured party’s response to a debtor’s request regarding a statement of account contain?55How should a secured party respond to a debtor’s request for accounting, for a list of collateral, or regarding a statement of account if, when the...
How should a secured party respond to a debtor’s request for accounting, for a list of collateral, or regarding a statement of account if, when the secured party receives the request, it claims no interest in the debtor’s collateral?56How many requests for accounting, for a list of collateral, or regarding a statement of account may a debtor make in a six-month period without cha...
How many requests for accounting, for a list of collateral, or regarding a statement of account may a debtor make in a six-month period without charge?