Can you name the Obscure Rules from Commercial Paper/Secured Transactions? by thayaplaya1

Question	Answer	Extra Notes
Shelter Rule provides that the transferee acquirers whatever _______ that her ______ had		Even if transferee is a mere donee she can be a holder in due course so long as transferor was
If HIDC had _____ ____ _____ that instrument was dishonored, overdue or subject to a claim then he will be deemed to have notice.		THUS in this circumstance he wont be a holder in due course
After a debtor defaults, self-help repossession is permissible so long as Creditor does not _____ ____ ____, which occurs when the secured party's action are likely to ______ _____		not relevant if actual fight broke out, but whether it was likely to happen
If the instrument has been improperly transferred, the transferee cannot qualify as a _____ ___ ___ ______		0
General unsecured creditor who gets a judicial lien is called a:		0
'Perfection' is attained when: 1)Secured party ___ ___ of collateral; 2) Automatic perfection for a __ in consumer goods; secured party __ ___ of the sec interest in the public re		0
An Article 9 creditor who succeeds in attaining perfection is called a		0
Holder in Due Course is someone who takes the instrument: _____ _____ and in _____ _____ and _____ ______ that its overdue, or subject to any defense or claim.		0
Warranty 4 that runs with the instrument: D promises that there is no defense or claim good against the D meaning that the instrument is _________		when a D indorses a check to another person
Warranty 2 that runs with the instrument: D promises that all signatures are ______ and _______		when a D indorses a check to another person
Any condition in the intstrument makes it a contract and thus _____ ________		0
Negotiable instrument: a __; payable to _ or bearer; __ by the maker or drawer; for a __ certain; containing an ____ ____ & no addtl ones; payable on _____ and payable in _______		WOSSUPP
Self help repossesor may not entor debtor's home without ________ and _________ consent		0
Strict foreclosure will not be allowed if any of the notified parties objects within _____ days		0
AACF vs PMSI and collateral is INVENTORY; To achieve first priorty PMSI must properly _____ BEFORE debtor takes possession AND must _____ the AACF (bank) BEFORE debtor takes posses		Rationale is to prevent Debtor Fraud
buyer who purchases collateral outside ordinary course of business is called a		0
Holder in due course is subject to all real defenses which are:		MADFIFI4
Warranty 5 that runs with the instrument: D promises that she has no knowledge of any ______ or ______ action against the maker or drawer		when a D indorses a check to another person
Self help repossessor who misuses the color of law has used _____ _____ and thus has breached the peace		0
Someone who purchases collateral from a merchant's inventory is called a		0
AACF vs PMSI and collateral is EQUIPMENT; To get first priority over AACF, PMSI must properly ______ within ___ _____ after debtor takes possession of the good in question		0
When a negotiable instrument is duly negotiated to a holder in due course, he takes the intrument free of all _____, free of ______ ______, and subject only to ______ _____		0
A writing stating 'pay to Bill' without more is NOT negotiable bc it doesn't contain the words _____ or ______		(Or assigns works too)
Filing a financing statement is done with the Sec of State in state where ______ is located, which is the state where she has her ______ ______.		EXCEPTION: if the collateral is timber, minerals or fixtures file locally!
Debtor's right to redeem in collateral is cut off once the SP has _______ the collateral or completed a _____ ______.		*To redeem, debtor has to fufill debt and pay interest and expenses inc attorney's fees
Warranty 1 that runs with instrument: D promises that the P has _____ _____ to the instrument		i.e when a D indorses a check to another person

Question	Answer	Extra Notes
Strict Foreclosure: When secured party retains the collateral in _____ _____ of the ______		0
'After acquired collateral clauses' enforceable?		0
A security interest that enables the debtor to purchase goods is called a ______ _____ ______ ______		0
Warranty 3 that runs with the instrument: D promises that the instrument has not been _______ ______		when a D indorses a check to another person
If maker was negligent, he is _______ from raising material alteration as a defense.		0
'Fraud in the Factum' means lies about ONLY the _______ itself.		Lies to induce the holder not about the instrument are personal and thus ineffective against HIDC
Under Art 9, what takes priority: person who filed first or the person who attached first? it is the person who _______ first		0
Lack of Consideration, unconscionability, waiver, estoppel, fraud in the inducement are all examples of _________ defenses		All are ineffective against Holder in due course
Someone who obtains an enforceable security interest but either neglects or fails to properly perfect it is called:		0
Once SP has taken collateral, he may sell it provided that every aspect of the sale is _____ ______ and prior to the sale ______ _____ must be sent to the debtor		if public sale, notice must state time and place, and if nonconsumer transaction, 10 days or more advance notice of the sale is reasonable
'Without Recourse' accompanying a signature means that the signator has passed title but has no signature _________		0
'Duly Negotiated' means that there has been a proper ______ of the instrument.		0
Judicial writ ordering sheriff to obtain possession of collateral and deliver it to secured party is called a		0
A repossession made OVER ANY PROTEST by the debtor constitutes a ____ of the _______		0
To strictly foreclose and the collateral is consumer goods, secured party must send _____ to the ______		(and any secondary obligors who are just guarantors of the debt)
Proper filing (via perfection) puts the world of potential creditors on _____ or ______ notice of the filer's claim		0
3 requirements for Attachment:1) _____ must be given by the creditor; 2) ______ called the 'security agreement'; Debtor must have ______ in the collateral		VCR
When a Defendant indorses a check, _______ run with the instrument		0
Secured creditor who takes as collateral a security interest 'in all Debtor's X (inventory eg) whether now held or hereafter acquired' is called an		the now held or hereafter acquired clause= acter acquired collateral clause and gives rise to an aacf
Security Agreement must be ________ by debtor and it must reasonably ______ the collateral		signed or electronically marked for security agreement
If defendant didn't indorse the check then only the _______ _______ may sue the D.		0
If collateral IS consumer goods and debtor has paid 60% strict foreclosure is ____ _____. Instead, the SP must sell the collateral within ____ _____		Failure to sell within that time makes SP liable in conversion!
In what order does each creditor have the claim to the same collateral		Each claimant entitled to Satisfaction in Full before next suboordinate claimant can take anything
Superior Ownership claim over the instrument held by a Holder in Due Course, the ________ wins.		0
Lender who doesn't bother to take collateral called a:		0
To strictly foreclose and collateral is NOT consumer goods, notice is sent to ______ and other _____ _____ who have told SP of their security interest in collateral, as well as ___		0

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