[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

[Kenada]

I will agree with Cupcake. I would have picked C for the same reason. The Local Bank had the Security agreement signed on Jan 8th which is before National Bank that did it on Jan 14th.

FAR 05/27/14; 786/110 - Done !

[Qlad]

@ Cupcake, insiyah…

I gave that answer too and it was wrong…they say the answer is A. bcoz the priority goes to the creditor who first file or perfected, even if perfection not complete upon filing. …

Alas… this is one of those many questions that gives me sleepless nights…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@ Cupcake, insiyah…

I gave that answer too and it was wrong…they say the answer is A. bcoz the priority goes to the creditor who first file or perfected, even if perfection not complete upon filing. …

Alas… this is one of those many questions that gives me sleepless nights…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Kenada]

Sigh…. i hate this part of REG!!! LOL You are not alone Qlad.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Sigh…. i hate this part of REG!!! LOL You are not alone Qlad.

FAR 05/27/14; 786/110 - Done !

[Anonymous]

Ughh 🙁 Really? So perfection doesn't have to have occurred but attachment does? I am trying to look this up in Wiley and don't see anything helpful.

[Anonymous]

Ughh 🙁 Really? So perfection doesn't have to have occurred but attachment does? I am trying to look this up in Wiley and don't see anything helpful.

[Anonymous]

my initial answer was A. but upon reading the comments it scared me and it seemed reasonable that you guys picked C.

my original thought process was that it doesn't matter who filed a security agreement first, as long as there was one. and in the wiley book it didn't really mention whether which one has to occur first, as long as a security agreement was made and whoever filed the first perfection has the right unless it falls under the exception of noninventory(20days), or inventory(notice to debtor, other creditors and filed before the debtor has possession).

in this case, the ‘property' was neither inventory nor noninventory and it is safe to deduce that the person(National Bank) perfected first, prevails

[Anonymous]

my initial answer was A. but upon reading the comments it scared me and it seemed reasonable that you guys picked C.

my original thought process was that it doesn't matter who filed a security agreement first, as long as there was one. and in the wiley book it didn't really mention whether which one has to occur first, as long as a security agreement was made and whoever filed the first perfection has the right unless it falls under the exception of noninventory(20days), or inventory(notice to debtor, other creditors and filed before the debtor has possession).

in this case, the ‘property' was neither inventory nor noninventory and it is safe to deduce that the person(National Bank) perfected first, prevails

[Kenada]

Thank you Derf 🙂

FAR 05/27/14; 786/110 - Done !

[Kenada]

Thank you Derf 🙂

FAR 05/27/14; 786/110 - Done !

[stoleway]

I found the the follwing information online and I thought it could be useful for you guys.

b) Perfection by Possession of Collateral

i) Tangible goods

ii) Chattel paper

iii) Negotiable instruments

c) Perfection by Control (investment property, deposit accounts, electronic chattel paper, letters of credit)

d) Automatic Perfection

i) PMSI in consumer goods

ii) PMSI is (1) money lent to the debtor to buy the actual collateral or (2) seller financing

iii) Consumer goods: personal, family, or household use

Priority Rules

i) Between unperfected secured parties: first to attach

ii) Between perfected and unperfected: perfected secured party wins

iii) Between two perfected secured creditors: first to file or perfect

iv) Purchase Money Security Interests have superpriority

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

I found the the follwing information online and I thought it could be useful for you guys.

b) Perfection by Possession of Collateral

i) Tangible goods

ii) Chattel paper

iii) Negotiable instruments

c) Perfection by Control (investment property, deposit accounts, electronic chattel paper, letters of credit)

d) Automatic Perfection

i) PMSI in consumer goods

ii) PMSI is (1) money lent to the debtor to buy the actual collateral or (2) seller financing

iii) Consumer goods: personal, family, or household use

Priority Rules

i) Between unperfected secured parties: first to attach

ii) Between perfected and unperfected: perfected secured party wins

iii) Between two perfected secured creditors: first to file or perfect

iv) Purchase Money Security Interests have superpriority

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

Thanks stoleway. Okay this is my last attempt to understand this and I am moving on. This is what I don't understand. On Wiley 2013 pages 264-265, it says that “only an attached security interest can be perfected”. Then it says for attachment to occur, one of the requirements is “a valid security agreement, unless security has a pledge”. If the guy hasn't signed the security agreement until Jan 14, to me it isn't valid on Jan 5 (pg. 265 also says the debtor's signature is required on security agreement) . Therefore, it couldn't have attached and thus could not have been perfected. What am I missing!??

[Anonymous]

Thanks stoleway. Okay this is my last attempt to understand this and I am moving on. This is what I don't understand. On Wiley 2013 pages 264-265, it says that “only an attached security interest can be perfected”. Then it says for attachment to occur, one of the requirements is “a valid security agreement, unless security has a pledge”. If the guy hasn't signed the security agreement until Jan 14, to me it isn't valid on Jan 5 (pg. 265 also says the debtor's signature is required on security agreement) . Therefore, it couldn't have attached and thus could not have been perfected. What am I missing!??

[Author]

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