1. Chapter 5 Fixtures

2. Degree of annexation Nature and use of property Relationship to property Relationship between annexor and premises Intent Issue of trade fixtures Who wants to know?

3. Fixture Analysis Figure 5.1

4. Attachments Fructus naturales Trees, bushes, grasses, etc. Fructus industriales Treated not as attachments but as personal property

5. Article 9 Security Interests Creation of a security interest Underlying debt; creditor gives value Record reflecting the grant of a security interest by the debtor Authenticated by debtor

6. Purchase Money Security Interest (PMSI) Creditor advances funds for the purchase of the collateral Gives the creditor priority over other creditors when financing statement is recorded

7. Perfection of Security Interests Record financing statement Record with land records

8. Requirements for Financing Statement Names of the debtors and the secured party Signature (authorization under Revised Article 9) of the debtor Address of the secured party from which information can be obtained Mailing address of the debtor A statement describing the items of collateral

9. Priorities under Article 9 A secured creditor has priority over an unsecured creditor. A perfected secured creditor has priority over subsequent real estate interests. (For example, a filing on January 3 gives the secured party priority over filings occurring later in that month or simply later in time.) (Continued on next slide)

10. Priorities under Article 9 A perfected secured creditor has priority over an unperfected secured creditor. A prior real estate interest (mortgage, deed of trust, lien, or judgment) has priority over a subsequently filed security interest. Between perfected secured creditors the date of filing is controlling, with the first creditor to file having priority.

11. Exceptions to General Priority Rules PMSI has priority over prior recorded land interest if financing statement filed within 20 days from when fixture becomes affixed Construction mortgage exception Readily movable exception Tenant exception Good-faith purchaser exception