Problem 18'7: Draft a Financing Statement

1
Problem 18.7 Draft a Financing Statement

• You are the secured party I am the debtor.
• This filing is to perfect the security interest
  you took in the first written assignment.
• I am the filing officer standard search logic is
  in effect.
• I recommend using the UCC-1 official form posted
  on eRes. (But you may not be able to save or
  email it.)
• Dont send filing fees or a formal cover letter.
• Due noon Thursday, March 5. Email it to
  lopucki_at_law.ucla.edu with the subject line, 250
  Financing Statement. Do not include the
  quotation marks in the subject line. Slip hard
  copy under the door of my office, room 3453.
  Keep a copy.
• Grading is pass/fail based on effectiveness.

2
Secured TransactionsAssignment 20

• Land and Fixtures Recording Systems
• (Fixtures is on the California Bar)

3
The Big Picture

• Part Two The Creditor Third Party Relationship
• Chapter 6-7 Perfection
• Assignment 16 Filing Systems
• Assignment 17 Financing Statements The
  Debtors Name
• Assignment 18 Financing Statements Other
  Information
• Assignment 19 Exceptions to filing
• Assignment 20 Real Estate Recording Systems
• Chapter 8-9 Priority

4
The Big Picture

• Part Two The Creditor Third Party Relationship
• Chapter 6-7 Perfection
• Assignment 16 Personal property Filing
  Systems
• Assignment 17 Financing Statements The
  Debtors Name
• Assignment 18 Financing Statements Other
  Information
• Assignment 19 Exceptions to filing
• Assignment 20 Real Estate Recording Systems
• Chapter 8-9 Priority

5
The Big Picture

• Part Two The Creditor Third Party Relationship
• Chapter 6-7 Perfection
• Assignment 16 Personal property Filing
  Systems
• Assignment 17 Financing Statements The
  Debtors Name
• Assignment 18 Financing Statements Other
  Information
• Assignment 19 Exceptions to filing
• Assignment 20 Real Estate Recording Systems
• Chapter 8-9 Priority

6
The Big Picture

• Part Two The Creditor Third Party Relationship
• Chapter 6-7 Perfection
• Assignment 16 Personal property Filing
  Systems
• Assignment 17 Financing Statements The
  Debtors Name
• Assignment 18 Financing Statements Other
  Information
• Assignment 19 Exceptions to filing
• Assignment 20 Real Estate Recording Systems
• Chapter 8-9 Priority

7
The relationship between Article 9 filing and
real estate recording
Property lies along a continuum from real to
personal . . .
Personal

Real
8
The relationship between Article 9 filing and
real estate recording
Property lies along a continuum from real to
personal . . .
Chattels Personal
Intermediate
Land Real
9
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
Chattels Personal
Intermediate
Land Real
9-334(b)
Real estate law governs goods sufficiently
related to real estate to be a fixture under
real estate law.
10
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
9-334(a)
Chattels Personal
Intermediate
Land Real
9-334(b)
UCC Article 9
UCC Article 9 permits the attachment and
perfection of security interests in goods,
including fixtures.
11
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
9-334(a)
Chattels Personal
Intermediate
Land Real
Ordinary building materials
9-334(b)
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.
12
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
9-334(a)
Trade fixtures
Chattels Personal
Intermediate
Intermediate
Land Real
Ordinary building materials
9-334(b)
UCC Article 9
Trade fixtures is a term used to refer to store
shelving and display cases that are not part of
the real estate.
13
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
9-334(a)
Trade fixtures
Chattels Personal
Intermediate
Land Real
Ordinary building materials
9-334(b)
UCC Article 9
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
14
The relationship between Article 9 filing and
real estate recording
Real estate law Fixtures 9-102(a)(41)
9-334(a)
Trade fixtures
Chattels Personal
Intermediate
Land Real
Ordinary building materials
Readily removables
9-334(b)
UCC Article 9
Goods 9-102(a)(44)
The UCC seeks to override real estate law with
respect to readily removable property that real
estate law considers fixtures 9-334(e)(2)
15
Separate Filing Systems

• Real estate
• recording system
• Mortgages
• Financing statements filed as fixture filings,
  9-502(b)
• Mortgages effective as fixture filings under
  9-502(c)

• Article 9 filing system
• Financing statements
• Financing statements filed against fixtures,
  9-501(a)(2).
• Financing statements against collateral,
  including fixtures, of a transmitting utility.

16
Separate Filing Systems

• Real estate
• recording system
• Mortgages

• Article 9 filing system
• Financing statements

17
Separate Filing Systems

• Real estate
• recording system
• Mortgages
• Financing statements filed as fixture filings,
  9-502(b)

• Article 9 filing system
• Financing statements

18
Separate Filing Systems

• Real estate
• recording system
• Mortgages
• Financing statements filed as fixture filings,
  9-502(b)
• Mortgages effective as fixture filings under
  9-502(c)

• Article 9 filing system
• Financing statements

19
Separate Filing Systems

• Real estate
• recording system
• Mortgages
• Financing statements filed as fixture filings,
  9-502(b)
• Mortgages effective as fixture filings under
  9-502(c)

• Article 9 filing system
• Financing statements
• Financing statements filed against fixtures, but
  not fixture filings 9-501(a)(2).

20
Separate Filing Systems

• Real estate
• recording system
• Mortgages
• Financing statements filed as fixture filings,
  9-502(b)
• Mortgages effective as fixture filings under
  9-502(c)

• Article 9 filing system
• Financing statements
• Financing statements filed against fixtures, but
  not fixture filings 9-501(a)(2).
• Financing statements against transmitting
  utilities, including fixture filings.

21
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is)
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it)
• Describe the real property (so real estate
  searcher can recognize it
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

22
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is) not on the
  9-521 form
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it)
• Describe the real property (so real estate
  searcher can recognize it
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

23
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is) not on the
  9-521 form
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it) box on form
• Describe the real property (so real estate
  searcher can recognize it
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

24
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is) not on the
  9-521 form
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it) box on form
• Describe the real property (so real estate
  searcher can see its relevance) addendum to
  form
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

25
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is) not on the
  9-521 form
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it) box on form
• Describe the real property (so real estate
  searcher can see its relevance) addendum to
  form
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner) addendum to form

26
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is)
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it)
• Describe the real property (so real estate
  searcher can recognize it)
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

Secured Party
Security interest
Real estate owner
27
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is)
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it)
• Describe the real property (so real estate
  searcher can recognize it)
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

Secured Party
Security interest
Real estate Owner
Fixture owner
Unrecorded lease
28
Financing statement which is filed as a fixture
filing 9-502(b) formalities

• Provide name of the debtor
• Provide name of the secured party
• Indicate the collateral covered
• Indicate that it covers fixtures (so real estate
  searchers will know what it is)
• Indicate it is to be filed in the real estate
  records (so filing officer will know what to do
  with it)
• Describe the real property (so real estate
  searcher can recognize it)
• Provide the name of a record owner (so it will be
  in the chain of title if fixture owner is not
  land owner)

Secured Party
Mortgagee (searcher)
Security interest
Mortgage
Real estate Owner
Fixture owner
Unrecorded lease
29
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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

30
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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

31
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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

32
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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

33
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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

34
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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 doesnt reach them in
  others.

35
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• 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 doesnt reach them in
  others.

36
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

37
Problem 20.1, page 357

• How do we perfect in these items of collateral
• Parcel of land with virgin growth of walnut
  trees?
• Mortgage will reach trees unless debtor has
  contracted to cut them.
• d. Should the mortgage mention the trees?
• Maybe, but include one, exclude the other.
  (grass).
• 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))

38
Problem 20.1, page 357

• How do we perfect in these items of collateral
• Parcel of land with virgin growth of walnut
  trees?
• Mortgage will reach trees unless debtor has
  contracted to cut them.
• Can a UCC filing reach trees? Not if they are
  like ordinary building materials.
• Should the mortgage exclude the other.
  (grass).
• 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))

39
Problem 20.1, page 357

• How do we perfect in these items of collateral
• Parcel of land with virgin growth of walnut
  trees?
• Mortgage will reach trees unless debtor has
  contracted to cut them.
• 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).
• 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))

40
Problem 20.1, page 357

• How do we perfect in these items of collateral
• Parcel of land with virgin growth of walnut
  trees?
• Mortgage will reach trees unless debtor has
  contracted to cut them.
• 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).
• 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))

41
Problem 20.1, page 357

• How do we perfect in these items of collateral
• Parcel of land with virgin growth of walnut
  trees?
• Mortgage will reach trees unless debtor has
  contracted to cut them.
• 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).
• 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))

42
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

Secured Lend- ing Partners
Promissory note 2 and security interest in the
mortgage
Promissory note 1 and mortgage
Pacific Interests
Mark IV Partners
43
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

Secured Lend- ing Partners
Does Article 9 apply? 9-109(b)
Promissory note 2 and security interest in the
mortgage
Promissory note 1 and mortgage
Pacific Interests
Mark IV Partners
44
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

Secured Lend- ing Partners
Promissory note 2 and security interest in the
mortgage
Promissory note 1 and mortgage
Pacific Interests
Mark IV Partners
45
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

Secured Lend- ing Partners
Promissory note 2 and security interest in the
mortgage
Promissory note 1 and mortgage
Pacific Interests
Mark IV Partners
46
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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).
• 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))

Secured Lend- ing Partners
Promissory note 2 and security interest in the
mortgage
Promissory note 1 and mortgage
Pacific Interests
Mark IV Partners
47
Problem 20.1, page 357

• How do we perfect in
• 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

48
Problem 20.1, page 357

• How do we perfect in
• 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,

Pacific Interests
Pacific Cellular Inc.
Farmer
49
Problem 20.1, page 357

• How do we perfect in
• 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,

Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
50
Problem 20.1, page 357

• How do we perfect in
• Cell phone tower?
• What does Pacific Interests own?
• Is the tower a fixture?

Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
51
Problem 20.1, page 357

• How do we perfect in
• Cell phone tower?
• What does Pacific Interests own?
• Is the tower a fixture?
• Is Pacific Cellular, Inc. a transmitting utility?

Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
52
Problem 20.1, page 357

• How do we perfect in
• 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

Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
53
Problem 20.1, page 357

• How do we perfect in
• 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

Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
54
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
55
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
56
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
57
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
58
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
59
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
60
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
61
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
Farmer
62
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
What do we file?
Farmer
63
Problem 20.1, page 357
How do we perfect in the tower if
Pacific Interests
Stock
Pacific Cellular Inc.
What do we file? (1) Local fixture filing and
(2) SOS indicating that it may cover fixtures of
a transmitting utility.
Farmer
64
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

65
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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
• . . . .

66
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

67
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

68
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

69
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

70
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

71
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

72
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

73
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

74
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

75
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 elses land.

76
Problem 20.1, page 357

• How do we perfect in these items of collateral
• 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 wont be
  collateral (example, the cell phone tower).

77
Problem 20.1, page 357
Secured Lending Partners, Inc.
Mortgagee on the Mall
Security interest in store fixtures
Mortgage on the Mall
Pacific Interests
Oaks Mall, Ltd.
Lease
How do we perfect in the store fixtures?
78
Problem 20.1, page 357
Secured Lending Partners, Inc.
Mortgagee on the Mall
Security interest in store fixtures
Mortgage on the Mall
Pacific Interests
Oaks Mall, Ltd.
Lease
How do we perfect in the store fixtures? Fixture
filing and UCC filing
79
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc.
80
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature
81
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures?

82
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108

83
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?

84
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?
  9-509(b)

85
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?
  9-509(b)
• Is this a valid real estate mortgage?

86
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?
  9-509(b)
• Is this a valid real estate mortgage? Page 159,
  146

87
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?
  9-509(b)
• Is this a valid real estate mortgage? Page 159,
  146
• Can we record this mortgage?

88
Problem 20.2, page 358
Philbrick lends 1 million unsecured to Marland,
Inc. Edwards, owner of Marland, Inc., hand
writes the following document
Marland, Inc. grants Harold Philbrick a security
interest in the Marland manufacturing facility,
Marland, Florida, to secure his loan to Marland,
Inc. Illegible signature

• Is this a valid Article 9 security agreement in
  inventory, equipment, and fixtures? 9-108
• Can we perfect this security agreement?
  9-509(b)
• Is this a valid real estate mortgage? Page 159,
  146
• Can we record this mortgage? Page 146