BUS 410 Study Guide - Final Guide: Secured Transaction, Secured Creditor, Security Interest

• School: Emory University
• Department: Business
• Course: BUS 410
• Professor: Burdette Allison

Document Summary

Ucc article 9 rules for priority of claims (competing claims) Claims = creditor"s claims over debtor"s party: debtor = person, business, something that has become insolvent. Summary of rules: (1) secured creditors have priority over unsecured creditors (secured vs. Unsecured) (2) competing secured creditors: first to attach has priority (3) first to perfect has priority (this trumps the second rule) [automatic or written financing statement] (4) competing perfected: the first to file or perfect has priority. Perfection priority rule first to perfect gets priority regardless of attachment (1) exception: pmsi in after-acquired property (floating lien: only get priority to the extent of getting the inventory back and unpaid debts. The rest goes back to the original creditor: this exception is made because otherwise the floating lien would mean the banks wouldn"t leave anything because they"re so aggressive, (1a) exception for pmsi in inventory. 2 buyers purchase those cars from the car company with borrowed money as well from bank.