SECURED TRANSACTIONS ISSUE SPOTTING CHECKLIST

Creation of a Security interest

Is there an agreement?
Was value given? (attachment)
o What type of security interest was created?
i. Typical
ii. PMSI
iii. Dual Status

Collateral

What is the nature of the collateral?

o Consumer Goods
o Inventory
o Equipment (is it now a fixture?)
o Farm Products
o Instruments
o Documents
o Chattel paper
o Accounts
o Proceeds
o Securities
o Investment Property

Perfection

Is the interest perfected and if so how?

o Automatically
o Control/Possession
o Filing
If by filing, was the filing proper?
i. Filed in proper location ( ie. location of collateral, debtor etc.)
ii. Names & addresses of the debtor and secured party
iii. Proper indication of the collateral
iv. If related to real property, is there a description of the property?

Default

Has there been a default?

o If yes, is there more than one security interest in the same collateral?
If yes, who has priority to what items of collateral and why?

Repossession

Has there been repossession and was it proper? (ie. Was there a breach of the peace or tort committed?)
o If improper, who is responsible for paying damages?

Sale

Has there been a sale of the collateral?

o Was there proper notice?
o Was the sale commercially reasonable in all aspects?

Note: This checklist was prepared by Washburn Bar Services and is merely intended as a supplement to helping students gain
practical comprehension of the subject that it reflects. More depth of exploration of issues will certainly be needed to gain a full
understanding of this body of law in a usual bar study. It is not intended to replace materials for a comprehensive bar program, such
as BarBri or Kaplan.