University:
Indiana University Bloomington
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

169

Pages:

2
Author:

bratrochanter

Key Provisions of Appendix B: Financing Statements 1. Mortgage as a Financing Statement (§ 9–502(c)): o A recorded mortgage can serve as a financing statement if it:  Identifies the goods or accounts covered.  Relates to the described real property or covers fixtures/asextracted collateral/timber.  Meets other financing statement requirements, excluding the indication to file in real property records.  Is duly recorded. 2. Filing Timing and Authorization (§ 9–502(d) & § 9–509): o A financing statement may be filed before a security agreement is executed or the security interest attaches. o Filing requires debtor authorization, either explicitly in an authenticated record or implicitly via a security agreement or acquisition of collateral. 3. Sufficiency of Financing Statements (§ 9–502(a) & § 9–504): o A financing statement must:  Provide the debtor's name.  Provide the name of the secured party or representative.  Clearly indicate the collateral. o For real-property-related filings, the statement must describe the property and, if applicable, name the record owner. 4. Errors and Misleading Information (§ 9–506): o Minor errors in a financing statement do not invalidate it unless they render the statement "seriously misleading." o Incorrect debtor names can be deemed non-misleading if standard search logic reveals the statement under the correct name. 5. Changes and New Debtors (§ 9–507 & § 9–508): o Financing statements remain effective despite collateral disposition. o Changes to debtor names or new debtors may require updates to avoid becoming ineffective for certain collateral after four months. 6. Amendments and Continuation (§ 9–512 & § 9–515): o Amendments can add or delete collateral, continue effectiveness, or correct information. o Amendments adding collateral or debtors are effective only from their filing date. o Continuation statements must be filed within six months before the financing statement’s expiration. 7. Termination and Secured Party Obligations (§ 9–513 & § 9–511): o A secured party must file a termination statement for financing statements covering consumer goods when the obligation ends or filing was unauthorized. o Secured parties of record are identified based on names provided in the initial filing or subsequent amendments. 8. Fixtures and Transmitting Utilities (§ 9–501 & § 9–502(b)): o Fixture filings require adherence to real-property record standards and property descriptions. o Collateral associated with transmitting utilities must be filed in designated offices, often specified by state law. 9. Special Considerations (§ 9–505 & Legislative Notes): o Transactions like consignments and leases can use alternative terminology. o States with unique recording systems (e.g., Torrens systems) may need localized adaptations for compliance. Legislative Notes:   The use of brackets (e.g., "[duly] recorded") indicates optional or statespecific language. States may need to tailor procedures for non-standard property recording systems or designate specific filing offices (e.g., Secretary of State).