Professional Documents
Culture Documents
• Note: Debtor must have rights, but need not have title to
collateral
Perfection Methods
1. Filing a financing statement
a. Required method for pure intangibles, A/R
b. Duration = 5 years (must be renewed w/in 6 months of
expiration)
c. Termination Statement = debtor may request this of
creditor once debt is paid
d. Location = Determined by debtor’s location
e. Elements
i. Debtor’s name and address
ii.Creditor’s name and address
iii.Collateral Description (sufficient to identify the
goods)
iv.Debtor’s signature
2. Possession of collateral by creditor
a. Required method for cash, negotiable instruments, and
nonnegotiable docs of title
i. NOTE: Negotiable docs of title can be perfected via
possession or filing.
b. Filing not required
3. Automatic Perfection by law
a. To Give Creditor Time to Gain Possession—Temporarily for
20 Days (applies to instruments & negotiable docs of title)
b. For Release of Possession—Temporarily for 20 Days
c. Because Collateral Is Proceeds of Perfected Collateral—
Temporarily for 20 Days
d. PMSI- Consumer Goods- Permanent
i. Possession or filing NOT required, automatic
perfection occurs upon attachment
ii.Does not apply to collateral controlled by a title
statute (e.g., motor vehicle registration).
Secured Transactions
iii.If the consumer good is to become a fixture, the
secured party must file to perfect her/his interest
over collateral after it becomes affixed to real
property
iv.Not good against a subsequent bona fide purchaser
who buys the goods from the original consumer,
unless the purchase money secured party has filed a
financing statement covering the goods
e. Random, Isolated, Casual Assignment of Account(s)
Receivable—Permanently (exception to requirement for
filing financing statement)
4. Field Warehousing (collateral on debtor’s premises w/ bonded
warehouseman)
5. Consignment for sale of goods
• Disposition Order
1. Expenses related to disposal
2. Debt owed to secured party
3. Debt owed to any other junior security holders