Term
| Disposition of Collateral (Sale) |
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Definition
- Sell, Lease, or otherwise dispose of collateral
- Public or Private Sale
- Must be commercially reasonable in all aspects
- Written notice to debtor, any sureties, and any known secured parties.
- Selling party may purchase at Public sales, but only certain things at private sales
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Term
| Proceeds of Sale in disposition |
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Definition
- Expenses of repossion and sale
- Satisfy debt to selling party
- Satisfy any junior interest
- Surplus goes to debtor
- Debtor must account for any deficiency absent an agreement
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Term
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Definition
- Secured party may propose to retain collateral in full or partial satisfaction
- Bank must send authenticated notice of proposal to debtor, sureties, and any other secured parties
- Assent for partial satisfaction must be authenticated, but for full can be implied after 20 days.
- If objected, must sell
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Term
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Definition
- First to file or perfect, which ever happens first, has priority
- If no perfection of filing of financing statement then the first to attach.
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Term
| Priority of PMSI in goods other than inventory or livestock |
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Definition
| Has priority over other security interests in same collateral if filed within 20 days of giving debtor possession |
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Term
| Priority of PMSI's of inventory or livestock |
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Definition
| Has priority in over other security interests in same if before the debtor receives possession the secured party perfects and sends authenticated notifications to other parties who might have an interest. |
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Term
| Priority rules for investment property |
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Definition
- A security interest perfected by control has priority over any conflicting security interest perfected by any other method
- If both perfected by control rank according to time
- SI granted to a debtor's intermediary (stock broker) has priority over a security interest granted to another secured party.
- Otherwise first to file or perfect
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Term
Priority Rules for Deposit Accounts |
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Definition
- Secured party who has obtained control by putting account in his name
- Bank that maintains the account except for 1
- Secured party who perfected by control has priority over any other method
- If both by control, then rank by time of control
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Term
Priority Rules for Chattel Paper |
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Definition
- Purchaser of chattel paper who in good faith gives value and takes possession in the ordinary course of business takes priority over any other security interest as long as it did not know or have reason to know of the other interest.
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Term
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Definition
- Possession of collateral by the secured party, or an authenticated security agreement by the debtor.
- Giving Value by the secured party, and
- Debtor has rights in the collateral
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