[Anonymous]

Hey all,

Question I have been doing the Ninja MCQ’s for REG and I am not sure what the grace period from the time the debtor gets possession of the collateral is when it comes to PMSI in non-inventory. It seems from the NINJA MCQ’s the the periods is 10 days, but from the Wiley book (2013) and other notes I have, it seems to say 20 days. Can anyone help clarify please?

Thanks!

[MikeHoncho]

I haven't heard of any 10 day rule in this category but I have heard of the 20 day rule.

The 20 day rule is:

Filing within 20 days of attachment, protects (perfects) the creditor's purchase money interest even when a consumer sells the non inventory goods to another consumer (this applies to consumer goods and equipment i.e. non inventory).

Inventory rule:

If the purchase is of inventory in the hands of the seller, the purchaser takes it free of any prior interests.

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

I haven't heard of any 10 day rule in this category but I have heard of the 20 day rule.

The 20 day rule is:

Filing within 20 days of attachment, protects (perfects) the creditor's purchase money interest even when a consumer sells the non inventory goods to another consumer (this applies to consumer goods and equipment i.e. non inventory).

Inventory rule:

If the purchase is of inventory in the hands of the seller, the purchaser takes it free of any prior interests.

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

If you post the question we could take a look at it together

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

If you post the question we could take a look at it together

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

You know what, its probably an outdated question. Under the article 9 revisions, the 10 day rule was changed to the 20 day rule 😉

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

You know what, its probably an outdated question. Under the article 9 revisions, the 10 day rule was changed to the 20 day rule 😉

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Anonymous]

Thanks, I also noticed after some research the old rule was 10 days. just a little surprised to see the question in the NINJA MCQ's. Thanks for the help!

[Anonymous]

Thanks, I also noticed after some research the old rule was 10 days. just a little surprised to see the question in the NINJA MCQ's. Thanks for the help!

[jeff]

This is not as cut and dry as it may appear.

For one, not all states have adopted the Article 9 revisions.

Secondly – a few states just enacted it this year.

Third – what is the CPA Exam going to test on? The CSO makes no mention of the UCC change.

I'm seeking clarity on the question. Will it affect your REG prep? I don't believe so.

Just because a law has changed doesn't mean it finds its way to the CPA Exam right away…please keep that in mind.

[jeff]

This is not as cut and dry as it may appear.

For one, not all states have adopted the Article 9 revisions.

Secondly – a few states just enacted it this year.

Third – what is the CPA Exam going to test on? The CSO makes no mention of the UCC change.

I'm seeking clarity on the question. Will it affect your REG prep? I don't believe so.

Just because a law has changed doesn't mean it finds its way to the CPA Exam right away…please keep that in mind.

[Author]

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