2. Secured Transactions Overview of Article 9 Prepared by Professor Stephen L. Sepinuck © 2015 all rights reserved Overview of Article 9

3. Main Concepts 1. Attachment §§ 9-202 through 9-204, 9-315(a)–(b), 9-336(b)–(c), 9-406 through 9-409 The time when a security agreement becomes effective according to its terms and enforceable against the debtor. (a) The debtor authenticates the security agreement (or the creditor takes possession of the collateral); (b) Value is given; and (c) The debtor has rights in the collateral. Overview of Article 9 collateral

4. Main Concepts Overview of Article 9 2. Enforcement §§ 9-404 through 9-408, 9-607 through 9-626 Consists of both repossession and foreclosure. (a) Disposition (sale, lease, license or exchange) (b) Acceptance (“strict foreclosure”) (c) Collection repossession ≠ re-possession

5. 3. Perfection §§ 9-308 through 9-314, 9-315(c)–(e), 9-507 The time when most third parties – including subsequent purchasers of the collateral, subsequent creditors of the debtor, and the bankruptcy trustee – become bound by the security interest. Generally, it requires: (a) Attachment; and (b) Some form of actual or constructive notice to the world of the creditor’s interest. Main Concepts Overview of Article 9 Warning! There are liens on the property

6. Main Concepts Overview of Article 9 4. Priority §§ 9-317 through 9-339 The determination of which, among multiple claimants to the collateral, will come first. Generally, as between two perfected secured parties, a first-in-time principle applies: The first to file or perfect.

7. 1.Classifications of Collateral – § 9-102 Goods Intangibles Quasi-Intangibles Consumer Goods Accounts Chattel Paper Equipment Deposit Accounts Instruments Farm ProductsGeneral IntangiblesDocuments (of Title) InventoryInvestment PropertyInvestment Property 2. Proceeds – § 9-315 3. Future Advances – § 9-204(c) 4. After-acquired Property – § 9-204(a)–(b) 5. Purchase-money Security Interests – § 9-103 Subordinate Concepts Overview of Article 9