1. Article 9 applies to any transaction intended to create a security interest in personal property or fixtures.
2. Attachment means that (1) the two parties made a security agreement, and either the debtor has authenticated a
security agreement describing the collateral or the secured party has obtained possession or control; and (2) the
secured party gave value in order to get the security agreement; and (3) the debtor has rights in the collateral.
3. A security interest may attach to after-acquired property.
4. Attachment protects against the debtor. Perfection of a security interest protects the secured party against parties
other than the debtor.
5. Filing is the most common way to perfect. For many forms of collateral, the secured party may also perfect by
obtaining either possession or control.
6. A purchase money security interest (PMSI) is one taken by the person who sells the collateral or advances
money so the debtor can buy the collateral.
7. A PMSI in consumer goods perfects automatically, without filing.
8. A buyer in ordinary course of business (BIOC) takes the goods free of a security interest created by his seller
even though the security interest is perfected.
9. A buyer who purchases chattel paper or an instrument in good faith in the ordinary course of his business, and
then obtains possession or control, generally takes free of any security interest.
10. Priority among secured parties is generally as follows:
a. A party with a perfected security interest takes priority over a party with an unperfected interest.
b. If neither secured party has perfected, the first interest to attach gets priority.
c. Between perfected security interests, the first to file or perfect wins.
11. A PMSI may take priority over a conflicting perfected security interest (even one perfected earlier) if the holder
of the PMSI meets certain conditions.
12. For deposit accounts, investment property, letter-of-credit rights, and instruments, a secured party who obtains
control or possession takes priority over one who merely filed.
13. When the debtor defaults, the secured party may take possession of the collateral on its own, without a court
order, if it can do so without a breach of the peace.
14. A secured party may sell, lease, or otherwise dispose of the collateral in any commercially reasonable way; in
many cases it may accept the collateral in full or partial satisfaction of the debt. The secured party may also
ignore the collateral and sue the debtor for the full debt.
15. When the debtor pays the full debt, the secured party must complete a
termination statement, notifying the public that it no longer claims a security
interest in the collateral.