[REG]6. Secured Transaction

6.1 Applicable Laws

- Uniform commercial code 9(담보관련)

- Common law + other statutes(artisan lien, mechanic lien)

 

6.2 Scope of Secured Transactions

1. Basic concept

- Debtor, Creditor

- $ <-> collateral = attachment(D, C간의 계약)

- Recording to the secretary of State = perfection

  (신고완료, potential creditor에게 알려줌)

- Debtor is in default > foreclosure 경매

2. Collateral subject to Uniform Commercial Code 9

- Tangible goods(consumer goods, Inventory, Equipment for biz

- Accounts, promissory note

- title document(bill of lading, warehouse receipts)

- Fixture(형광등)

- farm products

- Software

- security  interest in torts claim already assessed by a court 받을돈

3. collateral not subject to Uniform Commercial Code 9

- interest in land(title, possession, ex mortgage) > common law

- Mechanic lien, artisan lien > state property lien statute

- After-acquired commercial torts claim

 

1) Mortgage 담보: 처분해서 손실을 보전할 권리, 사람을 따라간다

2) Security Int 담보물건을 따라간다

 

 

6.3 Creation of security interest = attachment

1. Attachment > Creation of security int > rights and obligation bet parties not to 3rd Party

attachment 발생하면 계약 당사자끼리 의무권리가 생성됨. 3자에게 자신의 security int의 우선 순위를 주장할 수 없음   Requirement

   a. agreement [Debtor, Creditor] b. value($)  c. Collateral

 

 

 

6.4 Perfection of Security interests(emdrlth tlsrh, Potential creditor에게 주장)

Perfection: constructive notice to 3rd party

1) By filing

    - filing FS to the secretary of state( for 5yrs)

    - continuation statement (another 5yrs)

    - first record, first priority (security priority)

2) By possession

    - document of title = negotiable receipts or bill of lading

3) By control

    - Security int in investment property, nonconsumer deposit accounts, and electronic chattel paper

4) Automatic perfection = Purchase Money Security Interest(PMSI) in consumer goods

   * Lien 법에서 판결한 돈받을 권리

 

 

6.5 Priorities

1. Basic rule

- first record, first priority > security priority

- Statutory liens prevail over other creditors

- Statutory liens(mechanic, artisan) > secured creditor > unsecured creditor

2. Purchase Money Security Interest(PMSI)

1) PMSI in consumer goods(personal, family goods)

   - selling on credit

   - personal use, consumer goods

   > Automatic perfection without filing

2) PMSI in equipment(Biz use)

   - selling on credit

   - biz use

   >  Seller's filing within 20 days after attachment

3) PMSI in inventory(first record, first priority)

Background  

  - secured creditor > collateral as inventory

  - secured creditor vs. creditor of PMSI in inventory

Elements

  - selling on credit

  - Buyer's purchase of goods which will go into inventory

  - Seller's required steps before the goods are shipped into inventory

     notice to a secured creditor > seller file financing statement

> PMSI in inventory prevails over the preexisting security int

   Seller creditor, 물건이 buyer손에 들어가거나 inv로 들어가기 전 1. Inv creditor notice 2) filing a financing statement

   if not, inventory creditor에게 선순위가 돌아감

 

3. Buyer in the ordinary course of business(BIOC) 당근마겟 거래

- seller의 business에 맞는 물건 구매 > security int 없는 물건 구매

 

- seller must be in biz of selling goods of the kind

- buyer takes free only of int created by seller

- security int history 에 대한 인지는 중요하지 않음

- priority: BIOC > 중고거래

 

4. Statutory lien 무조건 1등

1) Mechanic lien

- provides service/ material for real property

- notice to the breaching p before the foreclosure of the property starts

ex) Roof수리 > 수리완료 > 돈 안줌 > mechanic lien 실행

2) Artisan lien

- service for personal property

- must obtain possession of the property

- notice to the breaching p before the foreclosure of the property starts

ex) 시계수리 > 수리완료 > 돈 안줌+시계가지고있어야함 > artisan lien 실행

 

5. Temporary perfection

proceed of collateral = security int(for 20 days) = temporary automatic perfection

- secured P needs to perfect the proceed > same priority of the original security int

 

6. Interstate shipment

- collateral transferred to another state, perfection in the original state valid for 4 months from the transfer

- creditor file financing statement to another state > perfection 5yrs

* Bona fide purchaser(notice없이 구매한 선의의 구매자) 깨끗한 물건을 구매하는것으로 간주

 

6.6 Rights of parities upon default

Secured creditor's 3 options in debtor's default

 1. Self-help 자력구제    

   - taking possession of collateral + without breaking peace 담보물건을 몰래 들고온다.

2. Forslosure(public, private), judicial process    3) reducing the claim to a judgment

1) notice to all creditors + debtor

  * perishable과일, value declinable, recognized mkt특수시장

2) Public sale or private sale > FMV

3) Distribution of proceds

  Judicial expense > secured party's debt > junior creditor > debtor/ deficiency judgment

 * 채권자중 2순위자가 foreclosure신청 진행하면, 경매 종료 후 2,3순위 채권은 사라짐. 하지만 1순위는 남음

 

3. Special issue

1) over 60% paid PMSI in consumer goods > creditor must sell the goods after possession within 90days

    ex) ⓐ creditor $5K (debt)  ⓑDebtor paid $3K(60% of PMSI) ⓒDebtor failed to pay 

          >>> Creditor foreclosed sell $3200, excess benefit $1200 to the debtor

 

2) Consumer goods in private sale

   - Secured P may sell the collateral at a private sale without notice to other secured Ps

   - secured p must notify the debtor before the sale unless perishable /decline in value

 

4. Debtor's rights

- Right to redeem 대신갚아서 가져온다the collateral(in default) 주인만 가능 - Right to redeem Waiver불가능

- Right to terminate the security interest(full payment)

 

 

6.7 Secured parties' duty

- filing /sending the debtor a termination statement when the debt is paid

- confirming, at the debtor's request, the unpaid amount of the debt

- using reasonable care in preserving any collateral in the secured party's possession