ST practice probs

Question 1

Debtor code?

Answer 1

9-102 (28)

Question 2

_________ means person who has interest, other than security interest in collateral.

Answer 2

Debtor (Seller of accounts, chattel paper, promissory notes)

Question 3

Debtor?

Answer 3

9-102 (a) (28): Person who has interest other than SI in the collateral. Seller of accounts etc

Question 4

________ means a person who owes payment / performance on the obligation. 9-102 (a) (59)

What code for 2nd one of this?

Answer 4

Obligor
2nd = (72)

Question 5

9-102 (a) (73) ?

Answer 5

Secured party

Question 6

What goods included in inventory?

Answer 6

Held out to be:
1. Sold
2. Leased
3. Exchange
4. Furnished up K
5. Consumed quickly in business
6. Raw materials

Question 7

Identify:
1. Crops
2. Crops grown in home garden
3. Timber (cut) or to be cut
4. Standing timber
5. Professor laptop

Answer 7

1. Farm product
2. PG
3. Maybe inventory
4. Maybe equipment
5. Could be CG / Equipment depending on how used

Question 8

Draft a SA using only one sentence.

Answer 8

I hereby grant Professor Jones a security interest in my Dodge Ram to secure my obligations (Because I’m obligor) on the $2,000 promissory note I signed.

Question 9

Proceeds?

Answer 9

Whatever acquired upon sale, lease, exchange, disposition of collateral… including, rights arising out of it, claims related to it, and payable insurance.

Question 10

Proceeds or no? If it is, then Bank SI auto attaches to it… For these questions, banks has original SI in museum paintings.

1. Charcoal sketch exchanged for a painting.
2. Funds from leasing a painting.

Answer 10

1. Yes, exchange.
2. Yes, a lease.

Question 11

Digger is a farmer who grows veggies and raises pigs… Bank has SI in the “livestock.” Does SI cover piglets born after signing the SA?

If no, how could bank get em?

Answer 11

1. No, offspring are not proceeds.
2. After acquired property clause

Question 12

If bank has SI in the inventory of a resteraunt… Does it have SI in the money received from serving customers?

Answer 12

Yes, this is proceeds of the inventory. However, sales tax amounts and tips prob not.

Question 13

Dragster retails motor vehicles.
Bank has SI in all existing and AA inventory.

1. Customer payment for extended warranty
2. Incentive payment from car manufacturer
3. Fee from buyers lender for the loan

Which does Bank’s SI attach?

Answer 13

None.

Question 14

S.I. ONLY apply to _____ _____ of the collateral only.

Answer 14

Identifiable proceeds 9-102 (a) (64) (a)

Question 15

LIBR?

Answer 15

Lessor of:
1. Amount of proceeds deposited
2. Daily amount between date of above and date creditor seeks to enforce

Question 16

T/F) If even one cent of money amount is proceeds, it is all treated as proceeds.

Answer 16

True!

Question 17

If bank has SI in item 1, which is sold and money received (proceeds) buys Item 2, where has SI gone?

Answer 17

Through tracing to 2.

Question 18

Value given (2-204) is what date?
1. Date agreement made
2. Date money later wired

Answer 18

Date agreement made.

Question 19

Value given code?

Answer 19

1-204

Question 20

What date does attachment occur?

Answer 20

Later of these dates:
1. Valid SA
2. Value given 1-204
3. Rights in collateral

Question 21

Guide:
Step 1
Step 2
Step 3
Step 4

Answer 21

1. Determine if 9-109 (a) (1) applies
2. Identify collateral
3. Classify collateral as to debtor
4. Determine if/when attachment occurs

Question 22

AA Property code?

Answer 22

9-204 (a)

Question 23

Proceeds code?

Answer 23

9-315 (a)(2)

Question 24

9-315 (A)(2)

Answer 24

Proceeds

Question 25

9-203(B)

Answer 25

Attachment

Question 26

9-335 9-336

Answer 26

Accessions Commingled goods