Understanding Security Interests and Perfection under Article 9 of UCC, Quizzes of Business and Labour Law

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TERM 1 Secured Transactions DEFINITION 1 Article 9 of the UCCchattel mortgagestransactions where debtor pledges personal property or fixtures to a creditor as security to a loan or another obligations TERM 2 security interest DEFINITION 2 interest in personal property or fixtures which secures payment or performance of an obligation TERM 3 Fixtures DEFINITION 3 personal property permanently attached to real estate TERM 4 collateral DEFINITION 4 property subject to a security interest TERM 5 debtor DEFINITION 5 party owing money or an obligation secured by the security interest TERM 6 secured party DEFINITION 6 person who holds the security interest TERM 7 financing statement DEFINITION 7 notice of security interest filed with a government office TERM 8 lien DEFINITION 8 right to sell property on defaultex. mortgages somejudgmentsand security interests TERM 9 Types of collateral governed under article 9 of UCC DEFINITION 9 goods--tangible movable, and fixturesQuasi tangiblesIntangibles TERM 10 Quasi Tangibles DEFINITION 10 paper (instruments) which in themselves evidence a right (e.g. negotiable instruments) TERM 21 Financing Statements DEFINITION 21 Public Notice of security Interestrequired method of perfecting for most business transactions: must file if no possession of collateral and no PSMI in consumer goods TERM 22 Contents of Financing Statements DEFINITION 22 name and address of the debtorname and address of the secured partydescription of collateral (type ofcollateralenough-->puts public on notice) TERM 23 Where to file Financing Statements DEFINITION 23 generally the secretary of state office TERM 24 Floating liens DEFINITION 24 security interests which switch from one piece of collateral to another or which use the same collateral to secure one more than one advance of money by a lender TERM 25 Types Floating Liens DEFINITION 25 proceedsfuture advancesafter-acquired property TERM 26 proceeds DEFINITION 26 whatever is received by the debtor in exchange for transferred collateral TERM 27 future advances DEFINITION 27 loans (advances) to be made by the secured party in the future, that is some time after the promissory note is signed (collateral is security for line of credit) TERM 28 after-acquired property DEFINITION 28 property of a type similar to the collateral acquired by the debtor after the signing of the security agreement TERM 29 2nd priority to collateral DEFINITION 29 secondhand purchasers of consumer goods take title free of security interests perfected by attachment -->garage sale rule TERM 30 3rd priority to collateral DEFINITION 30 purchase money security TERM 31 3rd priority of DEFINITION 31 purchase money security security interest - the holder of the non-inventory PSMI, if perfected within 20 days of attachment, has priority over other liens-its priority date relates back to time of attachment to receive priority TERM 32 4th priority to collateral DEFINITION 32 first to perfect or become a lien creditora)perfection of a security interest in any of three ways -possession, attachment or filingb) lien creditor creditor who has obtained a judgement and an execution lien; a trustee in bankruptcy is the most common TERM 33 5th priority to collateral DEFINITION 33 first to attach if no secured parties have perfected TERM 34 Rights and Duties of Parties upon default DEFINITION 34 Ignore the security interest and sue on the promissory noterepossessionrepossession saleretaining collateral TERM 35 Ignore the security interest DEFINITION 35 secured party may obtain a judgement based upon amount owed rather than repossessing the collateralwould use this if value of collateral deteriorated in value, sue for dollar amount instead TERM 46 Under Exclusive listing, what if? seller finds buyer DEFINITION 46 seller still owes commission to realtor TERM 47 Under Exclusive listing, what if? seller changes mind after buyer offers asking price DEFINITION 47 seller still owes commission to realtor TERM 48 Realtor duty DEFINITION 48 find a buyer who is ready, willing, and able to buy landrealtor owed commission if the find a qualified buyer TERM 49 2 Types of contracts for sale of land DEFINITION 49 cash on closinginstallment land contract TERM 50 cash on closing contract DEFINITION 50 purchase price is paid in full at closing: title is transferred immediately TERM 51 installment land contract DEFINITION 51 also called the contract for deedseller finances purchase and retains title and deed until consideration is paid inn fullrisk of forfeiture TERM 52 Deed DEFINITION 52 a document transferring title to real estate TERM 53 Grantor DEFINITION 53 transfers interest in land TERM 54 Grantee DEFINITION 54 receives interest in land TERM 55 Types of deed DEFINITION 55 quitclaimwarranty TERM 56 quitclaim deed DEFINITION 56 title is not guarenteed TERM 57 warranty deed DEFINITION 57 title is guaranteed TERM 58 requirements for a valid deed DEFINITION 58 written deed transferring described property, signed, notarized, anddelivered TERM 59 4 ways Grantees may take title DEFINITION 59 tenancy in commonjoint tenancytenancy by entiretiestransfer on death provisions TERM 60 tenancy in common DEFINITION 60 means that each co-owner's share will go to his or her heirs in the event of that co-owner's deathco-owner does not assume other half of title TERM 71 What type of partial interest? Mineral or timber rights DEFINITION 71 profit, can use land to remove trees or oil TERM 72 Licenses DEFINITION 72 revocable, temporary right to use real estate TERM 73 What type of partial interest? hunt on land with permission DEFINITION 73 license, hunting license allows you to hunt on land for certain period of time-not permanent TERM 74 What type of partial interest? concert ticket DEFINITION 74 license, allows you access to land during temporary amount of time can be revoked for misbehavior TERM 75 Life Estate DEFINITION 75 --right to exclusive possession of real estate based on the lifespan of a specified person: also called a life tenancy--if i buy one it is equivalent of a tenant on land for as long as i live--could conceivably be based on anyone's life, even someone who has no interest in the transaction TERM 76 What type of partial interest? donates land to a charity, as long as used for charitable purposes. If land no longer used for charity then ownership of land reverts back to you or your heirs? DEFINITION 76 fee simple defeasible, based on a condition TERM 77 What type of partial interest? When father dies, you acquire ownership of land DEFINITION 77 fee simple absolute, no conditions TERM 78 What type of partial interest? pay to be allowed on land til I die, exclusive possession in that you cannot interfere with my occupation of your property DEFINITION 78 life estate, can occupy land for as long as i live TERM 79 future interest DEFINITION 79 ownership interest in land becomes tangible in the futurereversionary interest in which possession of land reverts to grantor after a life estate TERM 80 What type of partial interest? Revisionary interest in which possession of land reverts to grantor after a life estate DEFINITION 80 future interest , gets it in future TERM 81 2 primary ways of assuring good title DEFINITION 81 abstract of title and title opiniontitle insurance TERM 82 abstract DEFINITION 82 a summary of transactions pertaining to the land since title came from the government TERM 83 title opinion DEFINITION 83 a lawyer's opinion on marketability of the title after examining the abstract TERM 84 title insurance DEFINITION 84 insurance company guarantees good titlecheck exclusions carefully TERM 85 mortgagor DEFINITION 85 transfers a mortgage (borrower) TERM 96 acceleration clause DEFINITION 96 allows declaration that the entire balance of the loan due if there is a default on the loan TERM 97 power of sale clause DEFINITION 97 allows a private foreclosure auction (nonjudicial foreclosure -- > no court hearing) TERM 98 due on sale clause DEFINITION 98 allows acceleration if any interest in land is sold TERM 99 points DEFINITION 99 loan origination fees where 1 point equals 1% of the loan amount TERM 100 prepayment privileges DEFINITION 100 allows early payment without penalty--> typical unless borrower pas no points or has bad credit TERM 101 Creditor's rights after default DEFINITION 101 acceleration clauseprivate or judicial foreclosuredeficiency judgement (balance after foreclosure-limited in some states) TERM 102 debtor's rights after default DEFINITION 102 statutory notice of foreclosure saleequity redemptionstatutory redemption TERM 103 equity redemption DEFINITION 103 right to purchase the real estate prior to foreclosure (by paying the entire balance due to mortgagee) TERM 104 statutory redemption DEFINITION 104 right to purchase after foreclosureex.some states:one year to redeem after foreclosure salesr is very limited in MO the right applies only if the holder purchases the property at its own foreclosure sale, and the mortgagor gives notice and posts a bond TERM 105 Priorities of mortgages/deeds race statute DEFINITION 105 1st to record a mortgage or deed wins-race to courthouse- record with the county recorder of deeds where land is located TERM 106 Priorities of mortgages/deeds notice statute DEFINITION 106 --one who has notice of another's interest prior to receiving an interest in land cannot defeat the other's interest--a good faith purchaser for value, who takes title without notice of a prior interest in the real estate, takes free of prior interests because he is damaged by the prior holder's failure to provide notice-- recording is the main way to provide notice TERM 107 notice-race DEFINITION 107 fist to record after taking interest without notice of another's interest winsMO rule TERM 108 Types of tenancies DEFINITION 108 tenancy for yearsperiodic tenancytenancy at willtenancy at sufferanceMO rule TERM 109 tenancy for years DEFINITION 109 a tenancy for any specific amount of time, even less than 1 year TERM 110 periodic tenancy DEFINITION 110 a tenancy forautomatically renewable successive periods of time, such as month to month TERM 121 English rule possession DEFINITION 121 the landlord must give actual possessionlandlord has to remove previous tenantsmost common in U.S TERM 122 American rule possession DEFINITION 122 legal right to possession (burden on tenant)tenant mas to remove previous tenants TERM 123 Landlord has to prevent interference with tenant's possession DEFINITION 123 interference by previous tenantsnuisance by other tenants TERM 124 landlord has reversionary interest DEFINITION 124 a future interest in which the right of possession is returned to the landlord at the end of the lease TERM 125 eviction DEFINITION 125 removal of the tenant by the landlord TERM 126 3 types of eviction DEFINITION 126 actual evictionconstructive evictionretaliatoryeviction TERM 127 Actual eviction DEFINITION 127 occurs by eviction notice or legal action TERM 128 constructive eviction 3 requirements DEFINITION 128 defect in premises causes substantial interference with the ability to live theretenant notifies landlord who fails to remedy the situationtenant leaves the premises TERM 129 retaliatory eviction DEFINITION 129 an eviction as a response to a complaint to a housing authority TERM 130 causes of eviction DEFINITION 130 nonpayment of rentwaste or prohibited alterationsunlawful use or nuisance TERM 131 Duty to repair Landlord's Duties DEFINITION 131 common law-- no durty of landlord to repairmodern rule-MO- housing codes--requires landlord to meet certain standards- implied warranty of habitability-duty to keep common areas safe-contractual duties TERM 132 implied warranty of habitability DEFINITION 132 requires residential landlord to keep the property fit for human habitation (occupancy), that is, the property must be free of defects which endanger life, health, or safety TERM 133 Landlord's liability for injuries DEFINITION 133 common areahigh crime areas TERM 134 Common area liability DEFINITION 134 a landlord is liable for injuries to tenants and third parties which occur because of negligent maintenance of common areas such as parking lots, sidewalks, and recreational facilitiesliability to tenants may be disclaimed through a valid exculpatory TERM 135 tenant's obligation to repair DEFINITION 135 commercialresidentialareas in tenants control TERM 146 Missouri rule on sublease and assignment DEFINITION 146 no sublease or assignment of a lease of less than 2 years duration is valid without written approval of the landlord TERM 147 sublease and assignment release DEFINITION 147 permission to release by landlord necessary to release first tenant from liability TERM 148 Termination Notice to Quit DEFINITION 148 a notice by the landlord or tent of the intent to terminate a periodic tenancymonth to month--must be given before 1st day of the month to terminate the lease at the end of the monthyear to year--notice must be given 60 days prior to the end of the leases year to terminate the lease at the end of the year TERM 149 Termination Holding Over after the lease term DEFINITION 149 with the landlord's approval-lease reverts to month to monthwithout landlord's approval-- the tenant is isresponsible for double rent TERM 150 Remedies DEFINITION 150 Summary ProceduresLandlord's LienDuty to mitigate TERM 151 Summary Procedures Remedy DEFINITION 151 allow a landlord to evict a tenant quicker by providing for a quicker trial date and fewer defenses TERM 152 Landlord's Lien Remedy DEFINITION 152 allows a landlord to keep tenants security for nonpayment or damages to real estateno landlord's lien in MO except for crops TERM 153 Duty to Mitigate Remedy DEFINITION 153 duty to lessen tenant's damages, usually by seeking a new tenantno duty of a tenant in MO to mitigate unless landlord keeps the security deposit