Secured Transactions Assignments 20 and 33
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Transcript of Secured Transactions Assignments 20 and 33
![Page 1: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/1.jpg)
1
Secured TransactionsAssignments 20 and 33
Land and Fixtures Recording Systems
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2
The relationship between Article 9 filing and real estate recording
Real Personal
Property lies along a continuum from real to personal . . .
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3
The relationship between Article 9 filing and real estate recording
Land
Real
Chattels
Personal
Intermediate
Property lies along a continuum from real to personal . . .
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4
The relationship between Article 9 filing and real estate recording
Land
Real
Chattels
Personal
Intermediate
9-334(b)
Real estate law “Fixtures” 9-102(a)(41)
Real estate law governs goods sufficiently related to real estate to be a “fixture” under real estate law.
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5
The relationship between Article 9 filing and real estate recording
Land
Real
Chattels
Personal
Intermediate
9-334(a)
9-334(b)
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
UCC Article 9 permits the attachment and perfection of security interests in “goods, including fixtures.”
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6
The relationship between Article 9 filing and real estate recording
Land
Real
Chattels
Personal
Intermediate
9-334(a)
9-334(b)
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
UCC Article 9 permits the attachment and perfection of security interests in “goods, including fixtures.” But not “ordinary building materials incorporated into an improvement on land.”
“Ordinarybuilding
materials”
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7
The relationship between Article 9 filing and real estate recording
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
Land
Real
Chattels
Personal
Intermediate
9-334(a)
9-334(b)
“Tradefixtures”“Ordinary
buildingmaterials”
“Trade fixtures” is a term used to refer to store shelving and display cases that are not part of the real estate.
Intermediate
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8
The relationship between Article 9 filing and real estate recording
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
Land
Real
Chattels
Personal
9-334(a)
9-334(b)
“Tradefixtures”“Ordinary
buildingmaterials”
“Goods” 9-102(a)(44)
“Goods” means all things that are moveable when a security interest attaches. “Goods” includes “(i) fixtures . . . .”
“Goods” includes “ordinary building materials incorporated into an improvement on land” Comment 3 to § 9-334
Intermediate
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9
The relationship between Article 9 filing and real estate recording
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
Land
Real
Chattels
Personal
9-334(a)
9-334(b)
“Tradefixtures”“Ordinary
buildingmaterials”
“Goods” 9-102(a)(44)
“Goods” means all things that are moveable when a security interest attaches. “Goods” includes “(i) fixtures . . . .”
“Goods” includes “ordinary building materials incorporated into an improvement on land” Comment 3 to § 9-334
Intermediate
“chattel financing is preserved”
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10
The relationship between Article 9 filing and real estate recording
Real estate law “Fixtures” 9-102(a)(41)
UCC Article 9
Land
Real
Chattels
Personal
Intermediate
9-334(a)
9-334(b)
“Tradefixtures”“Ordinary
buildingmaterials”
“Goods” 9-102(a)(44)
UCC deference to real estate law is not complete. UCC seeks to override as to “readily removable” fixtures § 9-334(e)(2)
Readilyremovables
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11
Real estaterecording system
1. Mortgages
2. Financing statements filed as fixture filings, 9-502(b)
3. Mortgages effective as fixture filings under 9-502(c)
Article 9 filing system
1. Financing statements
2. Financing statements filed against fixtures, 9-501(a)(2).
3. Financing statements against collateral, including fixtures, of a transmitting utility.
Separate Filing Systems
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12
Real estaterecording system
1. Mortgages
Article 9 filing system
1. Financing statements
Separate Filing Systems
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13
Real estaterecording system
1. Mortgages
2. Financing statements filed as fixture filings, §9-502(b)
Article 9 filing system
1. Financing statements
Separate Filing Systems
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14
Real estaterecording system
1. Mortgages
2. Financing statements filed as fixture filings, §9-502(b)
3. Mortgages effective as fixture filings under §9-502(c)
Article 9 filing system
1. Financing statements
Separate Filing Systems
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15
Real estaterecording system
1. Mortgages
2. Financing statements filed as fixture filings, §9-502(b)
3. Mortgages effective as fixture filings under §9-502(c)
Article 9 filing system
1. Financing statements
2. Financing statements filed against fixtures, but not fixture filings §9-501(a)(2).
Separate Filing Systems
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16
Separate Filing Systems
Real estaterecording system
1. Mortgages
2. Financing statements filed as fixture filings, §9-502(b)
3. Mortgages effective as fixture filings under §9-502(c)
Article 9 filing system
1. Financing statements
2. Financing statements filed against fixtures, but not fixture filings §9-501(a)(2).
3. Financing statements against transmitting utilities, including fixture filings.
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Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is)
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it)
6. Describe the real property (so real estate searcher can recognize it
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
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18
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is) [on the §9-521 addendum]
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it)
6. Describe the real property (so real estate searcher can recognize it
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
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19
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is) [on the §9-521 addendum]
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it) [§9-521form]
6. Describe the real property (so real estate searcher can recognize it
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
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20
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is) [on the §9-521 addendum]
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it) [§9-521form]
6. Describe the real property (so real estate searcher can see its relevance) [§9-521 addendum]
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
![Page 21: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/21.jpg)
21
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is) [on the §9-521 addendum]
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it) [§9-521form]
6. Describe the real property (so real estate searcher can see its relevance) [§9-521 addendum]
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner) [§9-521 addendum]
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22
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is)
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it)
6. Describe the real property (so real estate searcher can recognize it)
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
Securityinterest
Real estateowner
SecuredParty
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23
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is)
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it)
6. Describe the real property (so real estate searcher can recognize it)
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
Securityinterest
SecuredParty
Real estateOwner
Unrecordedlease
Fixtureowner
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24
Financing statement which is filed as a fixture filing: §9-502(b) formalities
1. Provide name of the debtor
2. Provide name of the secured party
3. Indicate the collateral covered
4. Indicate that it covers fixtures (so real estate searchers will know what it is)
5. Indicate it is to be filed in the real estate records (so filing officer will know what to do with it)
6. Describe the real property (so real estate searcher can recognize it)
7. Provide the name of a record owner (so it will be in the chain of title if fixture owner is not land owner)
Securityinterest
SecuredParty
Mortgage
Real estateOwner
Mortgagee(searcher)
Unrecordedlease
Fixtureowner
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25
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Not a fixture, not permanently affixed (Christmas tree case)
Mortgage reaches crops in some states (Comment 12)
Security interest in crops has priority over mortgage in crops, 9-334(i), so file financing statement with SOS
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26
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Not a fixture, not permanently affixed (Christmas tree case)
Mortgage reaches crops in some states (Comment 12)
Security interest in crops has priority over mortgage in crops, 9-334(i), so file financing statement with SOS
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27
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Not a fixture, not permanently affixed (Christmas tree case)
Mortgage reaches crops in some states (Comment 12)
Security interest in crops has priority over mortgage in crops, 9-334(i), so file financing statement with SOS
![Page 28: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/28.jpg)
28
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Not a fixture, not permanently affixed (Christmas tree case)
Mortgage reaches crops in some states (Comment 12)
Security interest in crops has priority over mortgage in crops, 9-334(i), so file financing statement with SOS
![Page 29: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/29.jpg)
29
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Probably not a fixture, not permanently affixed. Need a filing with SOS. (Christmas tree case)
Mortgage reaches crops in some states (Comment 12)
Security interest in crops has priority over mortgage in crops, 9-334(i), so file financing statement with SOS
![Page 30: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/30.jpg)
30
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Probably not a fixture, not permanently affixed. Need a filing with SOS. (Christmas tree case)
May be fixture, so need fixture filing.
Mortgage reaches crops in some states (§9-334 Cmt. 12), which means it doesn’t reach them in others.
![Page 31: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/31.jpg)
31
Problem 20.1, page 357
How do we perfect in these items of collateral:
a. A “one-third interest in a 160-acre tract of land?”
Tenancy in common: Real estate mortgage
Trust or partnership: Financing statement in SOS office
b. Pine trees growing in straight rows for easy harvesting?
Probably not a fixture, not permanently affixed. Need a filing with SOS. (Christmas tree case)
May be fixture, so need fixture filing.
Mortgage reaches crops in some states (§9-334 Cmt. 12), which means it doesn’t reach them in others.
![Page 32: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/32.jpg)
32
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
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33
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Mortgage will reach trees.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
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34
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Mortgage will reach trees.
Can a UCC filing reach trees? Not if they are like “ordinary building materials.”
Should the mortgage exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
![Page 35: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/35.jpg)
35
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Mortgage will reach trees.
Can a UCC filing reach trees? Not if they are like “ordinary building materials.”
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
![Page 36: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/36.jpg)
36
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Mortgage will reach trees.
Can a UCC filing reach trees? Not if they are like “ordinary building materials.”
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
![Page 37: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/37.jpg)
37
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Mortgage will reach trees.
Can a UCC filing reach trees? Not if they are like “ordinary building materials.”
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
![Page 38: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/38.jpg)
38
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A), but see “goods” definition, 9-102(a)(44).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
PacificInterests
Mark IVPartners
Secured Lend-ing Partners
Promissory note 1 and mortgage
Promissory note 2 and security interest in the mortgage
![Page 39: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/39.jpg)
39
Problem 20.1, page 357How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A), but see “goods” definition, 9-102(a)(44).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-308(e), 9-203(g)
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
PacificInterests
Mark IVPartners
Secured Lend-ing Partners
Promissory note 1 and mortgage
Promissory note 2 and security interest in the mortgage
Does Article 9 apply? §9-109(b)
![Page 40: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/40.jpg)
40
How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A), but see “goods” definition, 9-102(a)(44).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-203(g), 9-308(e).
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
PacificInterests
Mark IVPartners
Secured Lend-ing Partners
Promissory note 1 and mortgage
Promissory note 2 and security interest in the mortgage
Problem 20.1, page 357
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41
How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A), but see “goods” definition, 9-102(a)(44).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-203(g), 9-308(e). How?
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
PacificInterests
Mark IVPartners
Secured Lend-ing Partners
Promissory note 1 and mortgage
Promissory note 2 and security interest in the mortgage
Problem 20.1, page 357
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42
How do we perfect in these items of collateral:
c. Parcel of land with virgin growth of walnut trees?
Are the trees fixtures? Maybe “timber to be cut,” 9-501(a)(1)(A), but see “goods” definition, 9-102(a)(44).
Mortgage will reach trees unless we have decided to cut them.
d. Should the mortgage mention the trees?
Maybe, but “include one, exclude the other.” (grass).
e. Promissory note and the mortgage that secures it.
Perfect in the right to payment, 9-203(g), 9-308(e). How?
Take possession (instrument, 9-313(a)) and file with SOS (account, 9-310(a))
PacificInterests
Mark IVPartners
Secured Lend-ing Partners
Promissory note 1 and mortgage
Promissory note 2 and security interest in the mortgage
Problem 20.1, page 357
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43
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own?
Is the tower a fixture?
Is Pacific Cellular, Inc. a transmitting utility?
9-102(a)(80). Transmitting utility means a person primarily engaged in the business of:
(B) Transmitting communications electrically, electromagnetically, or by light
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44
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own?
Is the tower a fixture?
Is Pacific Cellular, Inc. a transmitting utility?
9-102(a)(80). Transmitting utility means a person primarily engaged in the business of:
(B) Transmitting communications electrically,
PacificCellular Inc.
PacificInterests
Farmer
![Page 45: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/45.jpg)
45
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own?
Is the tower a fixture?
Is Pacific Cellular, Inc. a transmitting utility?
9-102(a)(80). Transmitting utility means a person primarily engaged in the business of:
(B) Transmitting communications electrically,
PacificInterests
Farmer
Stock
PacificCellular Inc.
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46
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
PacificInterests
Farmer
PacificCellular Inc.
![Page 47: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/47.jpg)
47
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
We also want the tower. Is it a fixture?
PacificInterests
Farmer
PacificCellular Inc.
![Page 48: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/48.jpg)
48
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
We also want the tower. Is it a fixture?
Who is the “debtor?”
PacificInterests
Farmer
PacificCellular Inc.
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49
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
We also want the tower. Is it a fixture?
Who is the “debtor?” A transmitting utility?
PacificInterests
Farmer
PacificCellular Inc.
![Page 50: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/50.jpg)
50
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
We also want the tower. Is it a fixture?
Who is the “debtor?” A transmitting utility?
9-102(a)(80). Transmitting utility means a person primarily engaged in the business of:
(B) Transmitting communications electrically, electromagnetically, or by light
PacificInterests
Farmer
PacificCellular Inc.
![Page 51: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/51.jpg)
51
Stock
Problem 20.1, page 357How do we perfect in:
f. Cell phone tower?
What does Pacific Interests own? How do we perfect a security interest in stock?
We also want the tower. Is it a fixture?
Who is the “debtor?” A transmitting utility?
9-102(a)(80). Transmitting utility means a person primarily engaged in the business of:
(B) Transmitting communications electrically, electromagnetically, or by light
PacificInterests
Farmer
PacificCellular Inc.
![Page 52: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/52.jpg)
52
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
Not transmitting utility
PacificCellular Inc.
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53
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
Not transmitting utility
PacificCellular Inc.
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54
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
Not transmitting utility
PacificCellular Inc.
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55
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
PacificCellular Inc.
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56
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
PacificCellular Inc.
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57
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
Fixture filing in RE records 9-501(a)(1)
PacificCellular Inc.
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58
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
Fixture filing in RE records 9-501(a)(1)
PacificCellular Inc.
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59
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
Fixture filing in RE records 9-501(a)(1)
State UCC §9-501(a)(2)
Stock
PacificCellular Inc.
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60
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
What do we file?
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
Fixture filing in RE records 9-501(a)(1)
State UCC §9-501(a)(2)
PacificCellular Inc.
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61
How do we perfect in the tower if:
Problem 20.1, page 357
PacificInterests
Farmer
Stock
What do we file? (1) Local fixture filing and (2) SOS indicating that it may cover fixtures of a transmitting utility.
Fixture Not fixture
Transmitting utility
State UCC §9-501(b)
State UCC §9-501(b)
Not transmitting utility
Fixture filing in RE records 9-501(a)(1)
State UCC §9-501(a)(2)
PacificCellular Inc.
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62
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. 9-102(a)(80)
Are pipes fixtures? Probably yes. So we file under 9-501(b).
How do we perfect in the real property and easements? Mortgages, 9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
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63
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility?
§9-102(a)(80) “Transmitting utility” means a person primarily engaged in the business of:
. . . .
(C) transmitting goods by pipeline or sewer
. . . .
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64
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under 9-501(b).
How do we perfect in the real property and easements? Mortgages, 9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
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65
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under 9-501(b).
How do we perfect in the real property and easements? Mortgages, 9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 66: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/66.jpg)
66
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, 9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 67: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/67.jpg)
67
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, 9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 68: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/68.jpg)
68
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 69: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/69.jpg)
69
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
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70
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 71: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/71.jpg)
71
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 72: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/72.jpg)
72
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is 9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 73: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/73.jpg)
73
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is §9-501(b)? Helps if the fixtures are attached to someone else’s land.
![Page 74: Secured Transactions Assignments 20 and 33](https://reader036.fdocuments.net/reader036/viewer/2022081603/56813675550346895d9e023d/html5/thumbnails/74.jpg)
74
Problem 20.1, page 357How do we perfect in these items of collateral:
g. Natural gas pipeline that runs through 119 counties in four states?
Transmitting utility? Yes. §9-102(a)(80)(C)
Are pipes fixtures? Probably yes. So we file under §9-501(b).
How do we perfect in the real property and easements? Mortgages, §9-334(a). Nightmare.
Can the mortgages include the pipes? Yes, automatically.
If we do mortgages, do we need fixture filings? No.
So what good is §9-501(b)? Helps if the fixtures are attached to land or easements that won’t be collateral (example, the cell phone tower).
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75
PacificInterests
Oaks Mall,Ltd.
Secured LendingPartners, Inc.
Problem 20.1, page 357
Mortgagee onthe Mall
Lease
Security interest in “store fixtures”
Mortgage on the Mall
How do we perfect in the store fixtures?
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76
PacificInterests
Oaks Mall,Ltd.
Secured LendingPartners, Inc.
Problem 20.1, page 357
Mortgagee onthe Mall
Lease
Security interest in “store fixtures”
Mortgage on the Mall
How do we perfect in the store fixtures?
Fixture filing and UCC filing
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77
The Big Picture
Assignment 33: Secureds vs. Secureds: Land and Fixtures
Mortgage vs. Mortgage
Purchase money mortgage vs. Mortgage
Judgment lien vs. Mortgage
Mechanic’s lien vs. Mortgage
Fixture filing vs. Mortgage (also Construction Mortgage)
Purchase money fixture filing vs. Mortgage
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78
The Big Picture
Assignment 33: Secureds vs. Secureds: Land and Fixtures
Mortgage vs. Mortgage
Purchase money mortgage vs. Mortgage
Judgment lien vs. Mortgage
Mechanic’s lien vs. Mortgage
Fixture filing vs. Mortgage (also Construction Mortgage)
Purchase money fixture filing vs. Mortgage
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79
Priority Rules: Fixture Filing vs.Ordinary Mortgage
.
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80
Priority Rules: Fixture Filing vs.Ordinary Mortgage
.§334(e). First to file (in the real property records).
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81
Priority Rules: Fixture Filing vs.Ordinary Mortgage
.§334(e). First to file (in the real property records).
In context, that means the mortgage will nearly always win:
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82
Priority Rules: Fixture Filing vs.Ordinary Mortgage
.§334(e). First to file (in the real property records).
In context, that means the mortgage will nearly always win:
Goodsbecomefixtures
Goods
Real estate
Mortgage 1 Mortgage 2
First fixture filingopportunity
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83
Priority Rules: Fixture Filing vs.Ordinary Mortgage
.§334(e). First to file (in the real property records).
In context, that means the mortgage will nearly always win:
Goodsbecomefixtures
Goods
Real estate
Mortgage 1 Mortgage 2
First fixture filingopportunity
The fixture filing is subordinate to Mortgage 1, prior to Mortgage 2.
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84
Priority Rules: Purchase Money Fixture Filing vs. Ordinary Mortgage
.
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85
Priority Rules: Purchase Money Fixture Filing vs. Ordinary Mortgage
.§334(d). A purchase money security interest in fixtures has priority over an earlier-recorded mortgage if the fixture filing is made before 20 days after the goods become fixtures
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86
Priority Rules: Purchase Money Fixture Filing vs. Ordinary Mortgage
.§334(d). A purchase money security interest in fixtures has priority over an earlier-recorded mortgage if the fixture filing is made before 20 days after the goods become fixtures
Goodsbecomefixtures
Goods
Real estate
Mortgage 1
20 days
Purchase moneyfixture filing
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87
Priority Rules: Purchase Money Fixture Filing vs. Ordinary Mortgage
.§334(d). A purchase money security interest in fixtures has priority over an earlier-recorded mortgage if the fixture filing is made before 20 days after the goods become fixtures
Goodsbecomefixtures
Goods
Real estate
Mortgage 1
20 days
Purchase moneyfixture filing
Purchase moneyfixture filing has priorityover the mortgage
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88
Priority Rules: Fixture Filing vs. Construction Mortgage
.
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89
Priority Rules: Fixture Filing vs. Construction Mortgage
.§334(h). [A construction mortgage has priority over a fixture filing] (unless the fixture filing is prior in time, §334(e)), if
1. The construction mortgage is recorded before the goods become fixtures and
2. The goods become fixtures before the completion of construction.
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90
Priority Rules: Fixture Filing vs. Construction Mortgage
.§334(h). [A construction mortgage has priority over a fixture filing] (unless the fixture filing is prior in time, §334(e)), if
1. The construction mortgage is recorded before the goods become fixtures and
2. The goods become fixtures before the completion of construction.
Constructionmortgage
AffixingEnd
construction
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91
Priority Rules: Fixture Filing vs. Construction Mortgage
.§334(h). [A construction mortgage has priority over a fixture filing] (unless the fixture filing is prior in time, §334(e)), if
1. The construction mortgage is recorded before the goods become fixtures and
2. The goods become fixtures before the completion of construction.
Constructionmortgage
AffixingEnd
construction
PMSI
This PMSI is subordinate
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92
Priority Rules: Fixture Filing vs. Construction Mortgage
.§334(h). [A construction mortgage has priority over a fixture filing (unless the fixture filing is prior in time, §334(e))], if
1. The construction mortgage is recorded before the goods become fixtures and
2. The goods become fixtures before the completion of construction.
Constructionmortgage
AffixingEnd
construction
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93
Priority Rules: Fixture Filing vs. Construction Mortgage
.§334(h). [A construction mortgage has priority over a fixture filing (unless the fixture filing is prior in time, §334(e))], if
1. The construction mortgage is recorded before the goods become fixtures and
2. The goods become fixtures before the completion of construction.
Constructionmortgage
AffixingEnd
construction
Fixture filing PMSI
This fixture filing is prior, §334(e)
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94
.
Problem 33.3, page 553
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95
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
Problem 33.3, page 553
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96
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Problem 33.3, page 553
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97
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Is Folds perfected?
Problem 33.3, page 553
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98
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Is Folds perfected?
§9-501(a). [T]he office in which to file a financing statement . . . is . . . the office of the Secretary of State in all other cases, including a case in which the collateral is goods that are . . . fixtures and the financing statement is not filed as a fixture filing.
Problem 33.3, page 553
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99
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Is Folds perfected?
§9-501(a). [T]he office in which to file a financing statement . . . is . . . the office of the Secretary of State in all other cases, including a case in which the collateral is goods that are . . . fixtures and the financing statement is not filed as a fixture filing.
Between TIB and Folds, who has priority?
Problem 33.3, page 553
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100
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Is Folds perfected?
§9-501(a). [T]he office in which to file a financing statement . . . is . . . the office of the Secretary of State in all other cases, including a case in which the collateral is goods that are . . . fixtures and the financing statement is not filed as a fixture filing.
Between TIB and Folds, who has priority?
§9-334(e)(3). A perfected security interest in fixtures has priority over a conflicting interest . . . obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article.
Problem 33.3, page 553
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101
.1. Folds sells mobile home that is a fixture, takes SI, makes a
non-fixture filing
2. Debtor files bankruptcy
Is Folds perfected?
§9-501(a). [T]he office in which to file a financing statement . . . is . . . the office of the Secretary of State in all other cases, including a case in which the collateral is goods that are . . . fixtures and the financing statement is not filed as a fixture filing.
Between TIB and Folds, who has priority? Folds
§9-334(e)(3). A perfected security interest in fixtures has priority over a conflicting interest . . . obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article.
Problem 33.3, page 553
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102
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 5531. Folds sells fixture (mobile home) perfects by non-fixture filing
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103
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Commercialperfects
Problem 33.3, page 5531. Folds sells fixture (mobile home) perfects by non-fixture filing
2. Commercial Finance perfects by a fixture filing
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104
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Commercialperfects
Problem 33.3, page 5531. Folds sells fixture (mobile home) perfects by non-fixture filing
2. Commercial Finance perfects by a fixture filing
3. Debtor files bankruptcy
Debtor bankruptcy
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105
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 5531. Folds sells fixture (mobile home) perfects by non-fixture filing
2. Commercial Finance perfects by a fixture filing
3. Debtor files bankruptcy
As between Folds and Commercial, who is first?
Commercialperfects
Debtor bankruptcy
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106
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 5531. Folds sells fixture (mobile home) perfects by non-fixture filing
2. Commercial Finance perfects by a fixture filing
3. Debtor files bankruptcy
As between Folds and Commercial, who is first? Neither §9-334(c) or (e)(1) apply because a secured party is not an “encumbrancer . . . of the related real property.” Folds wins under §9-322(a)(1).
Commercialperfects
Debtor bankruptcy
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107
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 553
Commercialperfects
Debtor bankruptcy
Is the holder of a security interest an “encumbrancer?” No.
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108
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 553
Commercialperfects
Debtor bankruptcy
Is the holder of a security interest an “encumbrancer?” No.
§9-102(a)(32). “Encumbrance” means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.
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109
Goodsbecomefixtures
Goods
Real estate
Foldsperfects
Problem 33.3, page 553
Commercialperfects
Debtor bankruptcy
Is the holder of a security interest an “encumbrancer?” No.
§9-102(a)(32). “Encumbrance” means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.
§9-102(a)(52). “Lien creditor” means . . . a creditor that has acquired a lien on the property involved by . . . levy . . . or the like.
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110
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
Problem 33.5, page 554
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111
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Problem 33.5, page 554
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112
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Who must authorize the work?
Problem 33.5, page 554
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113
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Who must authorize the work?
New York Lien Law §3, page 537: A contractor . . . who performs services or furnishes materials . . . at the request of the owner . . . or his agent . . . shall have a lien . . . .
Problem 33.5, page 554
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114
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Who must authorize the work?
New York Lien Law §3, page 537: A contractor . . . who performs services or furnishes materials . . . at the request of the owner . . . or his agent . . . shall have a lien . . . .
§2. The term “owner” . . . includes . . . a lessee for a term of years . . . .
Problem 33.5, page 554
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115
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Who must authorize the work?
New York Lien Law §3, page 537: A contractor . . . who performs services or furnishes materials . . . at the request of the owner . . . or his agent . . . shall have a lien . . . .
§2. The term “owner” . . . includes . . . a lessee for a term of years . . . .
2. Will a mechanic’s lien entitle Sauls to rip the system out?
Problem 33.5, page 554
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116
.a. Sound City plans to install a sound system. No remodeling.
Wants to rip the system out if buyer doesn’t pay.
1. Will Sound City be entitled to a mechanic’s lien? Page 537.
Who must authorize the work?
New York Lien Law §3, page 537: A contractor . . . who performs services or furnishes materials . . . at the request of the owner . . . or his agent . . . shall have a lien . . . .
§2. The term “owner” . . . includes . . . a lessee for a term of years . . . .
2. Will a mechanic’s lien entitle Sauls to rip the system out?
Right to foreclose, no right to remove.
Problem 33.5, page 554
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117
.b. Does Sound City need the land owner’s signature for a
fixture filing?
Problem 33.5, page 554
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118
.b. Does Sound City need the land owner’s signature for a
fixture filing?
No, §9-203(b)(3), §9-509(b). Just the “debtor.”
Problem 33.5, page 554
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119
.b. Does Sound City need the land owner’s signature for a
fixture filing?
No, §9-203(b)(3), §9-509(b). Just the “debtor.”
Will a fixture filing give Sound City the right to remove?
§9-604(c). If a secured party . . . has priority over all owners and encumbrancers . . . the secured party, after default, may remove the collateral.
§9-334(d). A perfected security interest in fixtures has priority over . . . encumbrancer or owner . . . if . . . the debtor is in possession of the real estate and [the] purchase money security interest is perfected within 20 days . . . .
Problem 33.5, page 554
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120
.b. Does Sound City need the land owner’s signature for a
fixture filing?
No, §9-203(b)(3), §9-509(b). Just the “debtor.”
Will a fixture filing give Sound City the right to remove? Yes.
§9-604(c). If a secured party . . . has priority over all owners and encumbrancers . . . the secured party, after default, may remove the collateral.
§9-334(d). A perfected security interest in fixtures has priority over . . . encumbrancer or owner . . . if . . . the debtor is in possession of the real estate and [the] purchase money security interest is perfected within 20 days . . . .
Problem 33.5, page 554
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121
.c. Sound City plans to install the sound system in a building
presently under construction. Will a fixture filing give Sound City the right to repossess after default?
Problem 33.5, page 554
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122
.c. Sound City plans to install the sound system in a building
presently under construction. Will a fixture filing give Sound City the right to repossess after default?
§9-334(h). A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land . . . if a recorded record of the mortgage so indicates. . . .
Problem 33.5, page 554
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123
.c. Sound City plans to install the sound system in a building
presently under construction. Will a fixture filing give Sound City the right to repossess after default?
§9-334(h). A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land . . . if a recorded record of the mortgage so indicates. . . . [A] security interest in fixtures is subordinate to a construction mortgage if the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction.
Problem 33.5, page 554
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124
.c. Sound City plans to install the sound system in a building
presently under construction. Will a fixture filing give Sound City the right to repossess after default?
§9-334(h). A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land . . . if a recorded record of the mortgage so indicates. . . . [A] security interest in fixtures is subordinate to a construction mortgage if the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction.
Would Dub’s consent in writing to removal in the event of default be of help? §9-334(f).
Problem 33.5, page 554
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125
.c. Sound City plans to install the sound system in a building
presently under construction. Will a fixture filing give Sound City the right to repossess after default?
§9-334(h). A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land . . . if a recorded record of the mortgage so indicates. . . . [A] security interest in fixtures is subordinate to a construction mortgage if the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction.
Would Dub’s consent in writing to removal in the event of default be of help? §9-334(f).
Not unless Dub’s had a right to remove in its lease. The construction mortgage holder’s consent is needed.
Problem 33.5, page 554