RIGOS BAR REVIEW SERIES UNIFORM MULTISTATE ESSAY EXAM (MEE) REVIEW CHAPTER 7 UCC ARTICLE 9 SECURED TRANSACTIONS

S Magic Memory Outlines I. INTRODUCTION A. Purpose of Article 9 B. Question Facts COLLATERAL CATEGORY A. Tangible Goods 1. Classification a. Inventory b. Equipment c. Consumer Goods d. Farming Products e. Manufactured Homes 2. Primary Use Controls 3. Example B. Intangible and Documentary Collateral 1. Instrument 2. Document of Title 3. Chattel Paper 4. Account 5. Deposit Account 6. Investment Property 7. Commercial Tort Claims 8. Letter of Credit Rights 9. Insurance Policies 10. General Intangibles C. Proceeds D. Description Importance CREDITORS AND PURCHASE MONEY SECURITY INTEREST (PMSI) A. Collateral Sale B. Loan for Specific Collateral C. Working Capital Loan D. Burden of Proof

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E. Advantages to PMSI Status 1. Household Goods 2. Mere Attachment Perfection 3. 20-Day Grace Period 4. Super Priority on Inventory IV. SECURITY AGREEMENTS (SA) A. In General B. Collateral Description C. Proceeds 1. Collateral Interest Continues 2. SI Automatic D. After-Acquired Property E. Future Advances F. Floating Lien G. Other Provisions 1. Set-off or Recoupment Rights 2. Debtor Duties 3. Default 4. Remedies 5. Costs and Attorney Fees 6. Good Faith Required H. Prohibition on Assignment of Security Interest I. Agreement Not to Assert Defenses 1. Commercial Contract 2. Consumer Credit Contract ATTACHMENT ARV A. A Security Agreement 1. Writing Required 2. Reasonable Identity 3. Consumer Goods B. Rights in Collateral C. Value Given PERFECTION PCFMT A. Possession 1. Application 2. Examples of Possession Collateral 3. Effective Date B. Control 1. General Application

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2. Specific Application a. Deposit Account b. Electronic Chattel Paper c. Investment Property d. Letter of Credit Rights 3. Continuation C. Filing 1. Financing Statement (FS) a. Contents b. Seriously Misleading Change 2. Filing Place a. Proper b. Improper 3. Effective Date a. General Rule b. Filing 20-Day Grace Period c. Inventory Rule d. Proceeds 20-Day Grace Period e. Effective Period f. Termination 4. Consignment 5. Multi-State Transactions a. Collateral Location Not Controlling b. Debtor Movement and 4 Month Refiling c. New State and New Debtor D. Mere Attachment 1. Requirements 2. Consumer Transferee Problem 3. Equipment or Inventory Purposes 4. Example E. Title Certificate 1. State or Federal Statute 2. Notation Required 3. Exception VII. REPOSSESSION RIGHT A. Retention of Collateral 1. Repossession Details 2. Retention Requirements 3. Bankruptcy Exception B. Disposition Sale 1. Sale Details

Reasonable Aspects Creditor Warranty Proceeds Application Other Creditors Security Interests a. Senior Interests b. Junior Interests 6. Surplus and Deficiency C. 60% Payment by Debtor D. Unauthorized Sale, Removal, or Conversion VIII. PRIORITY RULES A. First to Attach B. Perfection Prevails over Attachment C. Competing Perfected Interests 1. PMSI Two Advantages 2. Inventory PMSI v. Non-PMSI D. Judgment Creditor E. Bankruptcy Trustee F. Unsecured Creditor G. Exceptions to Priorities RAP 1. Retail Inventory a. Buyer in the Ordinary Course b. Collateral Category Irrelevant c. Actual Knowledge Irrelevant d. Prior Filing Irrelevant e. Entrusting to a Merchant f. Farm Products 2. Adding Value to Collateral Laborers and Materials Lien a. Chattel and Real Property Liens (1) Filing of Lien (2) Lien Priority (3) Filing and HDC Exception b. Warehouse and Carrier Lien c. Lien Foreclosure 3. Preferential Bankruptcy Interests Avoided a. Asset Bargain Sale b. Preferential SI Given c. 90 Days from Petition d. One Year Extension e. Interest Voided IX. EXAM APPROACH TO ESSAY ANSWERS

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Overall Coverage Basic Approach Skeleton For Analysis Question Facts Model Answer