secured transactions introduction
DESCRIPTION
Secured Transactions Introduction. Secured Transactions – Basic Idea. A person wants property (real or personal) or services but does not have money. Person needs to become a debtor. Secured Transactions Creditor Options. 1 . Refusal. Secured Transactions Creditor Options. - PowerPoint PPT PresentationTRANSCRIPT
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SECURED TRANSACTIONS
Introduction
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Secured Transactions – Basic IdeaA person wants property (real or
personal) or services but does not have money. Person needs to become a debtor.
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Secured TransactionsCreditor Options1. Refusal
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Secured TransactionsCreditor Options2. Obtain promise to repay
Unsecured creditor General creditor
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Secured TransactionsCreditor Options3. Obtain surety
Co-signer Accommodation party Guarantor
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Secured TransactionsCreditor Options4. Obtain Collateral
Real property = mortgage or deed of trust
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Secured TransactionsCreditor Options4. Obtain Collateral
Personal Property = Article 9 security interest
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Basic Approach
1. Is the transaction within scope of Article 9?
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Basic Approach
2. Classify the collateral.
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Basic Approach
3. Determine if a security interest has been created, that is, has attachment occurred.
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Basic Approach
4. Determine if the security interest has been properly perfected.
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Basic Approach
5. Determine the persons who are making claims to the collateral.
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Basic Approach
6. Apply proper priority rules and rules regarding repossession.
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Very Brief History
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Benedict v. Ratner – p. 756Hub Carpet RatnerDebtor Creditor
BenedictBankruptcy Trustee
Issue: Who has priority to the accounts receivable?
Loan of money
Accounts receivable as collateral
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Pre-Code Security Devices1. The pledge
DR gives CR physical possession of the collateral.
Pros? Cons?
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Pre-Code Security Devices2. Chattel Mortgage
360 Financial Services
Queensland, Australia
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Pre-Code Security Devices3. Conditional Sale
Problem 262, p. 761
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Pre-Code Security Devices4. Trust Receipt
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Pre-Code Security Devices5. Factor’s Lien
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Pre-Code Security Devices6. Field Warehousing