Exam 43: Security Interests in Personal Property

A perfected security interest in fixtures has priority over the conflicting interest of an encumbrancer or owner of the real property:

According to Article 9 of the Uniform Commercial Code (UCC), chattel paper includes, among other things, patents, copyrights, software, and franchises.

Under the Uniform Commercial Code, a fixture is defined as goods:

The most common way of perfecting a security interest is by:

To be sufficient, a financial statement must:

An appliance store sells a television set to Adam for $750 on a conditional sales contract, reserving a security interest in the set until Adam has paid for it. The store does not file a financing statement but relies on attachment for perfection. Adam later borrows money from a credit union and gives it a security interest in the television set. The credit union does not perfect the security interest. Adam defaults on his loans and the credit union tries to claim the set. Under these circumstances, _____.

When the security interest is perfected and the buyer knows of its existence, a buyer in the ordinary course of business:

Possession of collateral by _____ is often the best way to perfect a security interest in chattel paper and negotiable documents of title.

A perfected purchase money security interest in inventory is likely to have priority over a conflicting security interest in the same inventory if the:

If the collateral is in the possession of the debtor and cannot be obtained without disturbing the peace, then the creditor must take court action to repossess the collateral.