Commercial transactions: a systems approach
Gespeichert in:
| Format: | Buch |
|---|---|
| Sprache: | English |
| Veröffentlicht: |
New York, NY
Aspen
2006
|
| Ausgabe: | 3. ed. |
| Schlagworte: | |
| Online-Zugang: | Inhaltsverzeichnis |
| Beschreibung: | XLI, 1184 S. |
| ISBN: | 0735556474 9780735556478 |
Internformat
MARC
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| 020 | |a 9780735556478 |9 978-0-7355-5647-8 | ||
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| 245 | 1 | 0 | |a Commercial transactions |b a systems approach |c Lynn M. LoPucki ... |
| 250 | |a 3. ed. | ||
| 264 | 1 | |a New York, NY |b Aspen |c 2006 | |
| 300 | |a XLI, 1184 S. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 650 | 4 | |a Crédit - Droit - États-Unis | |
| 650 | 4 | |a Débiteur et créancier - États-Unis | |
| 650 | 4 | |a Effets de commerce - États-Unis | |
| 650 | 4 | |a Vente - Droit - États-Unis | |
| 650 | 4 | |a Recht | |
| 650 | 4 | |a Credit |x Law and legislation |z United States | |
| 650 | 4 | |a Debtor and creditor |z United States | |
| 650 | 4 | |a Negotiable instruments |z United States | |
| 650 | 4 | |a Sales |z United States | |
| 651 | 4 | |a USA | |
| 700 | 1 | |a LoPucki, Lynn M. |d 1944- |e Sonstige |0 (DE-588)132994003 |4 oth | |
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Datensatz im Suchindex
| _version_ | 1804136509055434752 |
|---|---|
| adam_text | SUMMARY OF CONTENTS
CONTENTS
ACKNOWLEDGMENTS
INTRODUCTION
XV
XXXV
XXXIX
BOOK ONE
SALES SYSTEMS
CHAPTER 1.
ASSIGNMENT 1:
ASSIGNMENT 2:
ASSIGNMENT 3:
ASSIGNMENT 4:
ASSIGNMENT 5:
ASSIGNMENT 6:
ASSIGNMENT 7:
CHAPTER 2.
ASSIGNMENT 8:
ASSIGNMENT 9:
ASSIGNMENT 10:
ASSIGNMENT 11:
ASSIGNMENT 12:
CHAPTER 3.
ASSIGNMENT 13:
ASSIGNMENT 14:
ASSIGNMENT 15:
ASSIGNMENT 16:
FORMATION 3
THE ROLE AND SCOPE OF CODES IN SALES SYSTEMS 3
SCOPE ISSUES WITH LEASES, CISG, AND REAL ESTATE 22
THE PROCESS OF SALES CONTRACT FORMATION 40
FORMATION WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE 61
STATUTE OF FRAUDS WITH SALES OF GOODS 76
PAROL EVIDENCE WITH SALES OF GOODS 91
REQUISITES TO FORMALIZATION IN LEASES,
INTERNATIONAL SALES, AND REAL ESTATE SALES 102
TERMS 115
WARRANTIES WITH SALES OF GOODS 115
LEASE, INTERNATIONAL, AND REAL ESTATE WARRANTIES 133
REDUCING OR ELIMINATING WARRANTY LIABILITY: BASICS 146
COMMERCIAL IMPRACTICABILITY 160
UNCONSCIONABILITY 175
PERFORMANCE 183
CLOSING THE SALE WITH SALES OF GOODS 183
CLOSING WITH LEASES, INTERNATIONAL SALES, AND
REAL ESTATE 197
RISK OF LOSS WITH SALES OF GOODS 212
RISK OF LOSS WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE 225
SUMMARY OF CONTENTS
CHAPTER 4.
ASSIGNMENT 1 7:
ASSIGNMENT 18:
ASSIGNMENT 19:
ASSIGNMENT 20:
REMEDIES
SELLER S REMEDIES WITH SALES OF GOODS
LESSOR S AND SELLER S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE
BUYER S REMEDIES WITH SALES OF GOODS
BUYER S AND LESSEE S REMEDIES WITH LEASES,
235
235
250
263
INTERNATIONAL SALES, AND REAL ESTATE
BOOK TWO
FINANCIAL SYSTEMS
PART ONE
PAYMENT SYSTEMS
276
287
289
CHAPTER 5.
ASSIGNMENT 21:
ASSIGNMENT 22:
ASSIGNMENT 23:
ASSIGNMENT 24:
ASSIGNMENT 25:
ASSIGNMENT 26:
CHAPTER 6.
ASSIGNMENT 27:
ASSIGNMENT 28:
ASSIGNMENT 29:
ASSIGNMENT 30:
ASSIGNMENT 31:
CHAPTER 7.
ASSIGNMENT 32:
CHECKING ACCOUNTS AS THE PARADIGM
PAYMENT SYSTEM
THE BASIC CHECKING RELATIONSHIP AND THE
BANK S RIGHT TO PAY CHECKS
THE BANK S OBLIGATION TO PAY CHECKS
COLLECTION OF CHECKS
RISK OF LOSS IN THE CHECKING SYSTEM - THE BASIC
FRAMEWORK
RISK OF LOSS IN THE CHECKING SYSTEM - SPECIAL
RULES
TRUNCATION AND CHECK 21
ELECTRONIC PAYMENTS
THE CREDIT-CARD SYSTEM
ERROR AND FRAUD IN CREDIT-CARD TRANSACTIONS
DEBIT CARDS
THE WIRE-TRANSFER SYSTEM
ERROR IN WIRE-TRANSFER TRANSACTIONS
DEVELOPING PAYMENT SYSTEMS
INTERNET PAYMENTS
295
295
309
329
365
381
403
413
413
427
446
465
489
507
507
SUMMARY OF CONTENTS
XI
CHAPTER 8.
ASSIGNMENT 33:
ASSIGNMENT 34:
PART TWO
CREDIT SYSTEMS
CHAPTER 9.
ASSIGNMENT 35:
CHAPTER 10.
ASSIGNMENT 36:
ASSIGNMENT 37:
ASSIGNMENT 38:
LETTERS OF CREDIT
LETTERS OF CREDIT - THE BASICS
LETTERS OF CREDIT - ADVANCED TOPICS
THE BORROWER S OBLIGATION
PROMISSORY NOTES AND INTEREST RATES
CREDIT ENHANCEMENT
CREDIT ENHANCEMENT BY GUARANTY
PROTECTIONS FOR GUARANTORS
THIRD-PARTY CREDIT ENHANCEMENT - STANDBY
LETTERS OF CREDIT
529
529
548
559
563
563
577
577
590
606
PART THREE
SYSTEMS FOR ENHANCING LIQUIDITY
CHAPTER 11.
ASSIGNMENT 39:
ASSIGNMENT 40:
NEGOTIABILITY
NEGOTIABLE INSTRUMENTS
TRANSFER AND ENFORCEMENT OF NEGOTIABLE
INSTRUMENTS
ASSIGNMENT 41: HOLDERS IN DUE COURSE
CHAPTER 12. SECURITIZATION
ASSIGNMENT 42: SECURITIZATION
BOOK THREE
SECURED CREDIT
623
625
625
643
659
675
675
693
PART ONE
THE CREDITOR-DEBTOR RELATIONSHIP
695
CHAPTER 13.
ASSIGNMENT 43:
CREDITORS REMEDIES UNDER STATE LAW 697
REMEDIES OF UNSECURED CREDITORS UNDER STATE LAW 697
XII
ASSIGNMENT 44:
ASSIGNMENT 45:
ASSIGNMENT 46:
ASSIGNMENT 47:
CHAPTER 14.
ASSIGNMENT 48:
ASSIGNMENT 49:
CHAPTER 15.
ASSIGNMENT 50:
ASSIGNMENT 51:
ASSIGNMENT 52:
ASSIGNMENT 53:
CHAPTER 16.
ASSIGNMENT 54:
ASSIGNMENT 55:
CHAPTER 1 7.
ASSIGNMENT 56:
SUMMARY OF CONTENTS
SECURITY AND FORECLOSURE
REPOSSESSION OF COLLATERAL
JUDICIAL SALE AND DEFICIENCY
ARTICLE 9 SALE AND DEFICIENCY
CREDITORS REMEDIES IN BANKRUPTCY
BANKRUPTCY AND THE AUTOMATIC STAY
THE TREATMENT OF SECURED CREDITORS IN BANKRUPTCY
CREATION OF SECURITY INTERESTS
FORMALITIES FOR ATTACHMENT
WHAT COLLATERAL AND OBLIGATIONS ARE COVERED?
PROCEEDS, PRODUCTS, AND OTHER VALUE-TRACING
CONCEPTS
TRACING COLLATERAL VALUE DURING BANKRUPTCY
DEFAULT: THE GATEWAY TO REMEDIES
DEFAULT, ACCELERATION, AND CURE UNDER STATE LAW
DEFAULT, ACCELERATION, AND CURE UNDER
BANKRUPTCY LAW
THE PROTOTYPICAL SECURED TRANSACTION
THE PROTOTYPICAL SECURED TRANSACTION
714
729
749
769
785
785
804
823
823
843
856
872
885
885
906
921
921
PART TWO
THE CREDITOR-THIRD PARTY RELATIONSHIP
CHAPTER 18.
ASSIGNMENT 57:
ASSIGNMENT 58:
ASSIGNMENT 59:
ASSIGNMENT 60:
CHAPTER 19.
ASSIGNMENT 61:
PERFECTION
THE PERSONAL PROPERTY FILING SYSTEMS
ARTICLE 9 FINANCING STATEMENTS: THE DEBTOR S
NAME
943
945
945
964
ARTICLE 9 FINANCING STATEMENTS: OTHER INFORMATION 981
EXCEPTIONS TO THE ARTICLE 9 FILING REQUIREMENT 994
MAINTAINING PERFECTION 1011
MAINTAINING PERFECTION THROUGH LAPSE AND
BANKRUPTCY 1011
SUMMARY OF CONTENTS
XIII
ASSIGNMENT 62:
ASSIGNMENT 63:
ASSIGNMENT 64:
CHAPTER 20.
ASSIGNMENT 65:
CHAPTER 21.
ASSIGNMENT 66:
ASSIGNMENT 67:
ASSIGNMENT 68:
ASSIGNMENT 69:
TABLE OF CASES
TABLE OF STATUTES AND
INDEX
MAINTAINING PERFECTION THROUGH CHANGES
OF NAME, IDENTITY, AND USE
MAINTAINING PERFECTION THROUGH RELOCATION OF
DEBTOR OR COLLATERAL
MAINTAINING PERFECTION IN CERTIFICATE OF TITLE
SYSTEMS
PRIORITY
THE CONCEPT OF PRIORITY: STATE LAW
COMPETITIONS FOR COLLATERAL
LIEN CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
LIEN CREDITORS AGAINST SECURED CREDITORS:
FUTURE ADVANCES
SECURED CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
BUYERS AGAINST SECURED CREDITORS
REGULATIONS
1027
1039
1050
1067
1067
1081
1081
1092
1106
1122
1143
1153
1171
CONTENTS
ACKNOWLEDGMENTS XXXV
INTRODUCTION XXXIX
BOOK ONE
SALES SYSTEMS 1
CHAPTER 1. FORMATION 3
ASSIGNMENT 1: THE ROLE AND SCOPE OF CODES IN SALES SYSTEMS 3
A. FUNDAMENTAL ASPECTS OF SALES 3
B. THE REAL WORLD OF SALES 4
C. FUNCTIONS OF A CODE IN SALES SYSTEMS 6
D. SCOPE OF ARTICLE 2 8
RAGUS CO. V. CITY OF CHICAGO 11
DAKOTA PORK INDUS, V. CITY OF HURON 13
COOK V. DOWNING 15
PROBLEM SET 1 19
ASSIGNMENT 2: SCOPE ISSUES WITH LEASES, CISC,
AND REAL ESTATE 22
A. SCOPE OF ARTICLE 2A 22
CARLSON V. GIACHETTI 24
IN RE BAILEY 27
B. SCOPE OF THE CISG 34
VIVA VINO IMPORT CORP. V. FARNESE VINI S.R.L. 34
C. REAL ESTATE 36
PROBLEM SET 2 37
ASSIGNMENT 3: THE PROCESS OF SALES CONTRACT FORMATION 40
HILL V. GATEWAY 2000, INC. 40
IONICS, INC. V. ELMWOOD SENSORS, INC. 48
PROBLEM SET 3 58
ASSIGNMENT 4: FORMATION WITH LEASES, INTERNATIONAL
SALES, AND REAL ESTATE 61
A. FORMATION OF CONTRACTS FOR LEASES 61
B. FORMATION OF CONTRACTS FOR INTERNATIONAL SALES 62
FILANTO V. CHILEWICH INTERNATIONAL CORP. 63
C. FORMATION OF REAL ESTATE CONTRACTS 65
ALBRIGHT V. MCDERMOND 66
MESSIER V. PHILLIPS 71
PROBLEM SET 4 74
XVI
ASSIGNMENT 5: STATUTE OF FRAUDS WITH SALES OF GOODS
DF ACTIVITIES CORP. V. BROWN
GENERAL TRADING INT L V. WAL-MART STORES
PROBLEM SET 5
ASSIGNMENT 6: PAROL EVIDENCE WITH SALES OF GOODS
BETACO, INC. V. CESSNA AIRCRAFT CO.
C-THRU CONTAINER CORP. V. MIDLAND MFG. CO.
PROBLEM SET 6
ASSIGNMENT 7: REQUISITES TO FORMALIZATION IN LEASES,
INTERNATIONAL SALES, AND REAL ESTATE SALES
A. REQUISITES TO FORMALIZATION IN LEASES
B. REQUISITES TO FORMALIZATION IN INTERNATIONAL SALES
MCC-MARBLE CERAMIC CENTER, INC. V. CERAMICA NUOVA
D AGOSTINO, S.P.A.
C. REQUISITES TO FORMALIZATION IN THE REAL ESTATE SYSTEM
HOLBROOK V. HOLBROOK
PROBLEM SET 7
CHAPTER 2. TERMS
ASSIGNMENT 8: WARRANTIES WITH SALES OF GOODS
A. THE EFFECTS OF WARRANTY LAW ON BUSINESS PRACTICE
B. THE BASIC UCC QUALITY WARRANTIES
PHILLIPS V. CRICKET LIGHTERS
LEAL V. HOLTVOGT
C. EXTENDED WARRANTIES AND MAINTENANCE AGREEMENTS
PROBLEM SET 8
ASSIGNMENT 9: LEASE, INTERNATIONAL, AND REAL ESTATE WARRANTIES
A. LEASE WARRANTIES: THE CASE OF FINANCE LEASES
B. WARRANTIES WITH INTERNATIONAL SALES
MEDICAL MARKETING INT L V. INTEMAZIONALE MEDICO SCIENTIFICA
C. REAL ESTATE WARRANTIES
1. WARRANTIES GENERALLY
HERSHEY V. RICH ROSEN CONSTRUCTION CO.
2. THIRD-PARTY HOME WARRANTIES
PROBLEM SET 9
ASSIGNMENT 10: REDUCING OR ELIMINATING WARRANTY
LIABILITY: BASICS
A. WARRANTY REDUCTION WITH SALES OF GOODS
WILBUR V. TOYOTA MOTOR SALES, U.S.A.
B. WARRANTY REDUCTION WITH LEASES
C. WARRANTY REDUCTION WITH INTERNATIONAL SALES
SUPERMICRO COMPUTER, INC. V. DIGITECHNIC, S.A.
D. DISCLAIMING THE REAL ESTATE IMPLIED WARRANTY
OF HABITABILITY
AXLINE V. KUTNER
PROBLEM SET 10
CONTENTS
76
79
84
89
91
91
97
100
102
102
103
103
108
109
112
115
115
115
116
117
121
129
130
133
133
134
135
136
136
137
143
143
146
146
149
152
153
154
155
156
157
CONTENTS XVII
ASSIGNMENT 11: COMMERCIAL IMPRACTICABILITY
A. COMMERCIAL IMPRACTICABILITY WITH SALES OF GOODS
RESOURCES INVESTMENT CORP. V. ENRON CORP.
ALAMANCE COUNTY BD. OFEDUC. V. BOBBY MURRAY CHEVROLET
B. COMMERCIAL IMPRACTICABILITY WITH LEASES
C. COMMERCIAL IMPRACTICABILITY WITH INTERNATIONAL
SALES
D. COMMERCIAL IMPRACTICABILITY WITH REAL ESTATE
PROBLEM SET 11
ASSIGNMENT 12: UNCONSCIONABILITY
A. UNCONSCIONABILITY WITH SALES OF GOODS
MAXWELL V. FIDELITY FINANCIAL SERVICES, INC.
B. UNCONSCIONABILITY WITH LEASES
BMW FINANCIAL SERVICES V. SMOKE RISE CORP.
C. UNCONSCIONABILITY WITH INTERNATIONAL SALES
D. UNCONSCIONABILITY WITH REAL ESTATE
PROBLEM SET 12
CHAPTER 3. PERFORMANCE
ASSIGNMENT 13: CLOSING THE SALE WITH SALES OF GOODS
NORTH AMERICAN LIGHTING, INC. V. HOPKINS MANUFACTURING CORP.
BERNING V. DRUMWRIGHT
PROBLEM SET 13
ASSIGNMENT 14: CLOSING WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE
A. CLOSING WITH LEASES
COLONIAL PACIFIC LEASING CORP. V. F.W.CJ.R. CORP.
B. CLOSING WITH INTERNATIONAL SALES
DELCHI CARRIER SPA V. ROTOREX CORP.
C. REAL ESTATE CLOSINGS
GRAY V. FIRST NH BANKS
PROBLEM SET 14
ASSIGNMENT 15: RISK OF LOSS WITH SALES OF GOODS
COOK SPECIALTY CO. V. SCHRLOCK
DESIGN DATA CORP. V. MARYLAND CASUALTY CO.
PROBLEM SET 15
ASSIGNMENT 16: RISK OF LOSS WITH LEASES, INTERNATIONAL
SALES, AND REAL ESTATE
A. RISK OF LOSS WITH LEASES
B. RISK OF LOSS WITH INTERNATIONAL SALES
BP OIL INT L V. EMPRESA ESTATAL PETROLEOS DE ECUADOR
C. RISK OF LOSS WITH REAL ESTATE
VOORDE POORTE V. EVANS
PROBLEM SET 16
160
160
161
164
170
171
172
172
175
175
176
179
179
180
181
181
183
183
186
190
194
197
197
197
202
203
205
206
210
212
214
218
221
225
225
225
226
229
230
232
XVIII CONTENTS
CHAPTER 4. REMEDIES 235
ASSIGNMENT 17: SELLER S REMEDIES WITH SALES OF GOODS 235
1. WHY DO LEGAL REMEDIES MATTER AT ALL? 235
2. WHAT ARE A SELLER S LEGAL REMEDIES? 236
SACK V. LAWTON 238
FIRWOOD MFG. CO. V. GENERAL TIRE 242
PROBLEM SET 17 247
ASSIGNMENT 18: LESSOR S AND SELLER S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE 250
A. LESSOR S REMEDIES 250
C.I.C. CORP. V. RAGTIME, INC. 251
B. SELLER S REMEDIES WITH INTERNATIONAL SALES 256
C. SELLER S REMEDIES WITH REAL ESTATE SALES 257
WILLIAMS V. UBALDO 257
PROBLEM SET 18 260
ASSIGNMENT 19: BUYER S REMEDIES WITH SALES OF GOODS 263
IN RE BEECHE SYSTEMS 266
PROBLEM SET 19 271
ASSIGNMENT 20: BUYER S AND LESSEE S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE 276
A. LESSEE S REMEDIES 276
B. BUYER S REMEDIES WITH INTERNATIONAL SALES 277
C. BUYER S REMEDIES WITH REAL ESTATE 279
JUE V. SMISER 280
PROBLEM SET 20 283
BOOK TWO
FINANCIAL SYSTEMS 287
PART ONE
PAYMENT SYSTEMS 289
INTRODUCTION TO PAYMENT SYSTEMS 291
FIGURE 21.1 * BASIC PAYMENT SYSTEM 292
FIGURE 21.2 * PAYMENT BY THIRD PARTY 293
CHAPTER 5. CHECKING ACCOUNTS AS THE PARADIGM
PAYMENT SYSTEM 295
ASSIGNMENT 21: THE BASIC CHECKING RELATIONSHIP AND THE BANK S
RIGHT TO PAY CHECKS 295
A. THE BASIC RELATIONSHIP 295
FIGURE 21.3 * PAYMENT BY CHECK 296
B. THE BANK S RIGHT TO PAY 297
1. WHEN IS IT PROPER FOR THE BANK TO PAY? 297
CONTENTS XIX
(A) OVERDRAFTS 298
MCGUIRE V. BANK ONE, LOUISIANA, N.A. 298
(B) STOPPING PAYMENT 302
2. REMEDIES FOR IMPROPER PAYMENT 304
MCLNTYRE V. HARRIS 304
PROBLEM SET 21 306
ASSIGNMENT 22: THE BANK S OBLIGATION TO PAY CHECKS 309
A. WHEN ARE FUNDS AVAILABLE FOR PAYMENT? 309
1. TIME OF EVALUATION 309
2. AVAILABILITY OF FUNDS 310
FIGURE 22.1 * BASIC FUNDS AVAILABILITY RULES 312
FIGURE 22.2 *LOW-RISK ITEMS AVAILABILITY RULES 314
FIRST NATIONAL BANK V. COLONIAL BANK 317
B. WRONGFUL DISHONOR: WHAT HAPPENS IF THE BANK REFUSES
TO PAY? 319
MAYOTT V. FIRST NATIONAL BANK 320
PROBLEM SET 22 326
ASSIGNMENT 23: COLLECTION OF CHECKS 329
A. THE PAYOR BANK S OBLIGATION TO THE PAYEE 329
OUTDOOR TECHNOLOGIES, INC. V. ALLFIRST FINANCIAL, INC. 329
B. THE PROCESS OF COLLECTION 334
1. OBTAINING PAYMENT DIRECTLY 335
FIGURE 23.1 * DIRECT PRESENTMENT 336
2. OBTAINING PAYMENT THROUGH INTERMEDIARIES 336
(A) PAYEE/CUSTOMER TO DEPOSITARY BANK 336
(B) DEPOSITARY BANK TO PAYOR BANK 337
(I) MULTILATERAL ARRANGEMENTS (CLEARINGHOUSES) 338
KIMBERLY A. ALLEN TRUST V. FIRSTBANK OF
LAKEWOOD, N.A. 340
FIGURE 23.2 * CLEARINGHOUSE COLLECTION 343
(II) BILATERAL ARRANGEMENTS (DIRECT-SEND AND
CORRESPONDENT CLEARING) 344
(III) COLLECTION THROUGH THE FEDERAL RESERVE
SYSTEM 345
FIGURE 23.3 * DIRECT-SEND COLLECTION 346
FIGURE 23.4 * FEDERAL RESERVE COLLECTION 347
FIGURE 23.5*SAMPLE EARNS NOTICE 350
FIGURE 23.6 *RETURN OBLIGATIONS 351
NBT BANK V. FIRST NATIONAL COMMUNITY BANK 351
PROBLEM SET 23 362
ASSIGNMENT 24: RISK OF LOSS IN THE CHECKING SYSTEM *
THE BASIC FRAMEWORK 365
A. NONPAYMENT 365
FIGURE 24.1 *INDORSER LIABILITY 367
XX CONTENTS
B. FORGED SIGNATURES 367
1. FORGED DRAWERS SIGNATURES AND THE RULE OF PRICE V. NEAL 368
(A) WHAT IF THE PAYOR BANK PAYS THE FORGED CHECK? 368
DECIBEL CREDIT UNION V. PUEBLO BANK & TRUST COMPANY 369
FIGURE 24.2 * PRESENTMENT AND TRANSFER WARRANTIES 370
(B) WHAT IF THE PAYOR BANK DISHONORS THE
FORGED CHECK? 373
THE SPECIAL CASE OF TELEPHONE CHECKS 374
2. FORGED INDORSEMENTS 375
(A) WHAT IF THE PAYOR BANK DISHONORS THE CHECK
BECAUSE OF THE FORGED INDORSEMENT? 375
(B) WHAT IF THE PAYOR BANK PAYS THE CHECK DESPITE
THE FORGED INDORSEMENT? 375
(C) CONVERSION 377
C. ALTERATION 378
PROBLEM SET 24 378
ASSIGNMENT 25: RISK OF LOSS IN THE CHECKING SYSTEM *
SPECIAL RULES 381
A. NEGLIGENCE 381
HSBC BANK V. F & M BANK NORTHERN VIRGINIA 381
B. BANK STATEMENTS 385
STOWELL V. CLOQUET CO-OP CREDIT UNION 386
C. THEFT BY EMPLOYEES 391
CABLE CAST MAGAZINE V. PREMIER BANK 392
HALIFAX CORP. V. WACHOVIA BANK 395
D. IMPOSTORS 397
MENG V. MAYWOOD PROVISO STATE BANK 398
PROBLEM SET 25 400
ASSIGNMENT 26: TRUNCATION AND CHECK 21 403
A. PAYOR-BANK TRUNCATION 403
FIGURE 26.1*MICR LINE 404
B. DEPOSITORY-BANK TRUNCATION AND THE CHECK 21 ACT 406
FIGURE 26.2*CHECK PROCESSING UNDER CHECK 21 408
FIGURE 26.3 * SUBSTITUTE CHECK 409
PROBLEM SET 26 410
CHAPTER 6. ELECTRONIC PAYMENTS 413
ASSIGNMENT 27: THE CREDIT-CARD SYSTEM 413
A. THE ISSUER-CARDHOLDER RELATIONSHIP 413
B. USING THE CREDIT-CARD ACCOUNT 416
C. COLLECTION BY THE PAYEE 417
1. THE MECHANICS OF COLLECTION 417
FIGURE 27.1 * PAYMENT BY CREDIT CARD 419
FIGURE 27.2 *DIVIDING THE CREDIT-CARD DOLLAR 420
2. FINALITY OF PAYMENT 420
HYLAND V. FIRST USA BANK 422
PROBLEM SET 27 424
CONTENTS XXI
ASSIGNMENT 28: ERROR AND FRAUD IN CREDIT-CARD TRANSACTIONS 427
A. ERRONEOUS CHARGES 427
BELMONT V. ASSOCIATES NATIONAL BANK (DELAWARE) 428
B. UNAUTHORIZED CHARGES 437
MINSKOFFV. AMERICAN EXPRESS TRAVEL RELATED SERVICES CO. 438
PROBLEM SET 28 444
ASSIGNMENT 29: DEBIT CARDS 446
A. PAYMENT WITH A DEBIT CARD 446
1. ESTABLISHING THE DEBIT-CARD RELATIONSHIP 447
2. TRANSFERRING FUNDS WITH A DEBIT CARD 448
3. COLLECTION BY THE PAYEE 448
(A) PIN-BASED DEBIT CARDS 449
(B) PIN-LESS DEBIT CARDS 449
B. ERROR AND FRAUD IN DEBIT-CARD TRANSACTIONS 450
1. ERRONEOUS TRANSACTIONS 451
2. FRAUDULENT TRANSACTIONS 451
HOSPICOMM, INC. V. FLEET BANK, N.A. 456
HERITAGE BANK V. LOVETT 459
PROBLEM SET 29 462
ASSIGNMENT 30: THE WIRE-TRANSFER SYSTEM 465
A. INTRODUCTION 465
B. HOW DOES IT WORK? 466
1. INITIATING THE WIRE TRANSFER: FROM THE ORIGINATOR
TO THE ORIGINATOR S BANK 466
FIGURE 30.1 * PAYMENT BY WIRE TRANSFER 467
TRUSTMARK INS. CO. V. BANK ONE 467
BANCO DE LA PROVINCIA V. BAYBANK BOSTON, N.A. 472
2. EXECUTING THE TRANSFER: FROM THE ORIGINATOR S
BANK TO THE BENEFICIARY S BANK 476
(A) BILATERAL SYSTEMS (INCLUDING SWIFT) 476
(B) CHIPS 477
(C) FEDWIRE 478
FIGURE 30.2*MULTILATERAL NETTING ON CHIPS 478
FIGURE 30.3*SAMPLE FEDWIRE MESSAGE 479
3. COMPLETING THE FUNDS TRANSFER: FROM THE BENEFICIARY S
BANK TO THE BENEFICIARY 482
C. DISCHARGE OF THE ORIGINATOR S UNDERLYING OBLIGATION 483
D. FINALITY OF PAYMENT 484
ALEO INTERNATIONAL, LTD. V. CITIBANK, N.A. 484
PROBLEM SET 30 486
ASSIGNMENT 31: ERROR IN WIRE-TRANSFER TRANSACTIONS 489
A. RECOVERING FROM PARTIES IN THE SYSTEM 489
1. ERRORS BY THE ORIGINATOR 490
CORFAN BANCO ASUNCION PARAGUAY V. OCEAN BANK 490
2. ERRORS IN THE SYSTEM 496
(A) SENDING EXCESSIVE FUNDS 496
(B) SENDING INADEQUATE FUNDS 497
XXII
(C) BANK-STATEMENT RULE
B. RECOVERING FROM THE MISTAKEN RECIPIENT
C. FRAUD
PROBLEM SET 31
CHAPTER 7. DEVELOPING PAYMENT SYSTEMS
ASSIGNMENT 32: INTERNET PAYMENTS
A. BACKGROUND
MARK A. LEMLEY & DAVID MCGOWAN, LEGAL IMPLICATIONS
OF NETWORK ECONOMIC EFFECTS
RONALD J. MANN, MAKING SENSE OF PAYMENTS POLICY IN THE
INFORMATION AGE
B. CREDIT CARDS ON THE INTERNET
1. PROCESSING THE TRANSACTIONS
2. PROBLEMS
(A) FRAUD
(B) PRIVACY
(C) MICROPAYMENTS
C. DEBIT CARDS ON THE INTERNET
D. ACH TRANSFERS (WEB ENTRIES)
E. FOREIGN AND CROSS-BORDER PAYMENTS
FIGURE 32.1*ACH CHECKS
F. A NOTE ON MOBILE PAYMENTS
PROBLEM SET 32
CONTENTS
498
499
500
503
507
507
507
507
512
516
516
517
517
520
521
522
523
524
525
526
527
CHAPTER 8. LETTERS OF CREDIT 529
ASSIGNMENT 33: LETTERS OF CREDIT - THE BASICS 529
A. THE UNDERLYING TRANSACTION 530
FIGURE 33.1 * IRREVOCABLE COMMERCIAL LETTER OF CREDIT 531
B. ADVISING AND CONFIRMING BANKS 533
FIGURE 33.2 * ISSUING THE LETTER OF CREDIT 533
C. THE TERMS OF THE CREDIT 534
D. DRAWING ON THE CREDIT 536
SAMUEL RAPPAPORT FAMILY PARTNERSHIP V. MERIDIAN BANK 537
CARTER PETROLEUM PRODUCTS, INC. V. BROTHERHOOD BANK & TRUST CO. 540
E. REIMBURSEMENT 545
FIGURE 33.3 * PAYMENT WITH A LETTER OF CREDIT 545
PROBLEM SET 33 545
ASSIGNMENT 34: LETTERS OF CREDIT - ADVANCED TOPICS 548
A. ERROR AND FRAUD IN LETTER-OF-CREDIT TRANSACTIONS 548
1. WRONGFUL HONOR 548
2. WRONGFUL DISHONOR 550
3. FRAUD 552
(A) FORGED DRAFTS 552
(B) FRAUDULENT SUBMISSIONS BY THE BENEFICIARY 552
B. ASSIGNING LETTERS OF CREDIT 554
CONTENTS XXIII
C. CHOICE-OF-LAW RULES 556
PROBLEM SET 34 556
PART TWO
CREDIT SYSTEMS 559
INTRODUCTION TO CREDIT SYSTEMS 561
CHAPTER 9. THE BORROWER S OBLIGATION 563
ASSIGNMENT 35: PROMISSORY NOTES AND INTEREST RATES 563
A. PROMISSORY NOTES 563
SCHILLACE V. CHANNELL SHOPPING PARTNERSHIP 563
B. DETERMINING THE AMOUNT OF COMPENSATION 569
1. FIXED AND VARIABLE INTEREST RATES 569
2. INTEREST-RATE SWAPS 571
FIGURE 35.1*INTEREST-RATE SWAP 5 72
3. THE ENFORCEABILITY OF INTEREST-RATE AGREEMENTS 572
PROBLEM SET 35 573
CHAPTER 10. CREDIT ENHANCEMENT 577
ASSIGNMENT 36: CREDIT ENHANCEMENT BY GUARANTY 577
A. THE ROLE OF GUARANTIES 577
THOMAS S. HEMMINDINGER, HILLMAN ON COMMERCIAL LOAN
DOCUMENTATION 373-377 579
B. RIGHTS OF THE CREDITOR AGAINST THE GUARANTOR 583
F.T.L., INC. V. CRESTAR BANK (IN RE F.T.L., INC.) 584
PROBLEM SET 36 587
ASSIGNMENT 37: PROTECTIONS FOR GUARANTORS 590
A. RIGHTS OF THE GUARANTOR AGAINST THE PRINCIPAL 590
1. PERFORMANCE 590
2. REIMBURSEMENT 590
FIGURE 37.1 * RIGHTS OF THE GUARANTOR 591
3. SUBROGATION 591
CORPORATE BUYING SERVICE V. LENOX HILL RADIOLOGY ASSOCIATES 592
FIGURE 37.2*GUARANTOR PREFERENCES 595
B. RIGHTS OF THE GUARANTOR AGAINST THE CREDITOR 596
1. SURETYSHIP DEFENSES 596
2. WAIVER OF SURETYSHIP DEFENSES 598
MODERN PHOTO OFFSET SUPPLY V. THE WOODFIELD GROUP 598
C. BANKRUPTCY OF THE GUARANTOR 602
TRIMEC, INC. V. ZALE CORPORATION 602
PROBLEM SET 37 604
ASSIGNMENT 38: THIRD-PARTY CREDIT ENHANCEMENT - STANDBY
LETTERS OF CREDIT 606
A. THE STANDBY LETTER-OF-CREDIT TRANSACTION 606
FIGURE 38.1 * STANDBY LETTERS OF CREDIT 608
XX
J
V
CONTENTS
NOBEL INSURANCE CO. V. FIRST NAT L. BANK 609
FIGURE 38.2 * FORM STANDBY LETTER OF CREDIT 611
WOOD V. STATE BANK 613
B. PROBLEMS IN STANDBY LETTER-OF-CREDIT TRANSACTIONS 615
1. BANKRUPTCY OF THE APPLICANT 615
IN RE OCANA 616
2. THE ISSUER S RIGHT OF SUBROGATION 618
CCF, INC. V. FIRST NATIONAL BANK (IN RE SLAMANS) 618
PROBLEM SET 38 620
PART THREE
SYSTEMS FOR ENHANCING LIQUIDITY 623
CHAPTER 11. NEGOTIABILITY 625
ASSIGNMENT 39: NEGOTIABLE INSTRUMENTS 625
A. NEGOTIABILITY AND LIQUIDITY 625
B. A TYPICAL TRANSACTION 627
FIGURE 39.1*SAMPLE NEGOTIABLE DRAFT 627
C. THE NEGOTIABILITY REQUIREMENTS 628
FIGURE 39.2*THE PLAYERS IN A NEGOTIABLE DRAFT TRANSACTION 629
1. THE PROMISE OR ORDER REQUIREMENT 629
2. THE UNCONDITIONAL REQUIREMENT 631
DBA ENTERPRISES, INC. V. FINDLAY 631
3. THE MONEY REQUIREMENT 634
4. THE FIXED-AMOUNT REQUIREMENT 634
NAGEL V. CRONEBAUGH 635
5. THE PAYABLE-TO-BEARER-OR-ORDER REQUIREMENT 637
6. THE DEMAND OR DEFINITE-TIME REQUIREMENT 638
7. THE NO-EXTRANEOUS-UNDERTAKINGS REQUIREMENT 639
PROBLEM SET 39 640
ASSIGNMENT 40: TRANSFER AND ENFORCEMENT OF NEGOTIABLE
INSTRUMENTS 643
A. TRANSFERRING A NEGOTIABLE INSTRUMENT 643
1. NEGOTIATION AND STATUS AS A HOLDER 643
2. SPECIAL AND BLANK INDORSEMENTS 644
3. RESTRICTIVE AND ANOMALOUS INDORSEMENTS 646
B. ENFORCEMENT AND COLLECTION OF INSTRUMENTS 646
1. THE RIGHT TO ENFORCE AN INSTRUMENT 646
2. PRESENTMENT AND DISHONOR 647
3. DEFENSES TO ENFORCEMENT 648
TURMAN V. WARD S HOME IMPROVEMENT, INC. 648
C. LIABILITY ON AN INSTRUMENT 649
FIGURE 40.1 * LIABILITY ON AN INSTRUMENT 651
D. THE EFFECT OF THE INSTRUMENT ON THE UNDERLYING OBLIGATION 651
MCMAHON FOOD CORP. V. BURGER DAIRY CO. 653
PROBLEM SET 40 656
FIGURE 40.2*REVERSE OF SAMPLE TKO CHECK 656
CONTENTS XXV
ASSIGNMENT 41: HOLDERS IN DUE COURSE 659
A. HOLDER-IN-DUE-COURSE STATUS 659
1. THE REQUIREMENTS FOR HOLDER-IN-DUE-COURSE STATUS 659
2. RIGHTS OF HOLDERS IN DUE COURSE 661
STATE STREET BANK & TRUST CO. V. STRAWSER 663
3. PAYMENT AND DISCHARGE 665
4. TRANSFEREES WITHOUT HOLDER-IN-DUE-COURSE STATUS 667
B. THE FADING ROLE OF NEGOTIABILITY 668
1. THE DECLINING USE OF NEGOTIABLE INSTRUMENTS 668
2. THE DECREASING RELEVANCE OF NEGOTIABILITY TO
NEGOTIABLE INSTRUMENTS 669
PROBLEM SET 41 671
CHAPTER 12. SECURITIZATION 675
ASSIGNMENT 42: SECURITIZATION 675
A. SECURITIZATION AND LIQUIDITY 675
B. THE RISE OF SECURITIZATION 676
C. INVESTMENT SECURITIES AND ARTICLE 8 677
1. THE SUBJECT MATTER: WHAT IS A SECURITY? 678
2. THE OBLIGATION OF THE ISSUER 679
3. THE TWO HOLDING SYSTEMS 681
(A) THE DIRECT HOLDING SYSTEM 681
(I) MAKING THE TRANSFER EFFECTIVE AS BETWEEN
SELLER AND PURCHASER 681
(II) MAKING THE TRANSFER EFFECTIVE AGAINST THE ISSUER 682
(III) THE EFFECT OF A TRANSFER ON THIRD PARTIES 682
(B) THE INDIRECT HOLDING SYSTEM 683
(I) THE BASIC FRAMEWORK 683
(II) RIGHTS AGAINST THE INTERMEDIARY 685
(III) RIGHTS AGAINST THIRD PARTIES 687
PROBLEM SET 42 689
BOOK THREE
SECURED CREDIT 693
PART ONE
THE CREDITOR-DEBTOR RELATIONSHIP 695
CHAPTER 13. CREDITORS REMEDIES UNDER STATE LAW 697
ASSIGNMENT 43: REMEDIES OF UNSECURED CREDITORS UNDER
STATE LAW 697
A. WHO IS AN UNSECURED CREDITOR? 697
B. HOW DO UNSECURED CREDITORS COMPEL PAYMENT? 698
VITALE V. HOTEL CALIFORNIA, INC. 699
C. LIMITATIONS ON COMPELLING PAYMENT 707
WISCONSIN STATUTES ANNOTATED 708
XXVI
D. IS THE LAW SERIOUS ABOUT COLLECTING UNSECURED DEBTS? 711
PROBLEM SET 43 711
ASSIGNMENT 44: SECURITY AND FORECLOSURE 714
A. THE NATURE OF SECURITY 714
THE INVENTION OF SECURITY: A PSEUDO HISTORY 716
BASILE V. ERHAL HOLDING CORPORATION 719
B. FORECLOSURE PROCEDURE 721
1. JUDICIAL FORECLOSURE 721
WISCONSIN STATUTES ANNOTATED 724
2. POWER OF SALE FORECLOSURE 725
3. U.C.C. FORECLOSURE BY SALE 726
PROBLEM SET 44 726
ASSIGNMENT 45: REPOSSESSION OF COLLATERAL 729
A. THE IMPORTANCE OF POSSESSION PENDING FORECLOSURE 729
B. THE RIGHT TO POSSESSION PENDING FORECLOSURE - REAL PROPERTY 730
1. THE DEBTOR S RIGHT TO POSSESSION DURING FORECLOSURE 730
2. APPOINTMENT OF A RECEIVER 730
CALIFORNIA CODE OF CIVIL PROCEDURE 732
ILLINOIS MORTGAGE FORECLOSURE LAW 732
3. ASSIGNMENTS OF RENTS 732
C. THE RIGHT TO POSSESSION PENDING FORECLOSURE - PERSONAL
PROPERTY 733
DEL S BIG SAVER FOODS, INC. V. CARPENTER COOK, INC. 734
D. THE ARTICLE 9 RIGHT TO SELF-HELP REPOSSESSION 737
E. THE LIMITS OF SELF-HELP: BREACH OF THE PEACE 738
SALISBURY LIVESTOCK CO. V. COLORADO CENTRAL CREDIT UNION 738
F. SELF-HELP AGAINST ACCOUNTS AS COLLATERAL 743
PROBLEM SET 45 745
ASSIGNMENT 46: JUDICIAL SALE AND DEFICIENCY 749
A. STRICT FORECLOSURE 749
B. FORECLOSURE SALE PROCEDURE 750
C. PROBLEMS WITH FORECLOSURE SALE PROCEDURE 751
ARMSTRONG V. CSURILLA 752
1. ADVERTISING 756
WISCONSIN STATUTES ANNOTATED 756
FIGURE 46.1*NOTICE OF A FORECLOSURE SALE 757
2. INSPECTION 757
HOMEBUYER FINDS REMAINS OF OWNER 758
3. TITLE AND CONDITION 758
MARINO V. UNITED BANK OF ILLINOIS, N.A. 758
4. HOSTILE SITUATION 761
5. THE STATUTORY RIGHT TO REDEEM 762
D. ANTIDEFICIENCY STATUTES 762
CALIFORNIA CODE OF CIVIL PROCEDURE 763
E. CREDIT BIDDING AT JUDICIAL SALES 764
F. JUDICIAL SALE PROCEDURE: A FUNCTIONAL ANALYSIS 766
PROBLEM SET 46 766
CONTENTS XXVII
ASSIGNMENT 47: ARTICLE 9 SALE AND DEFICIENCY
A. STRICT FORECLOSURE UNDER ARTICLE 9
B. SALE PROCEDURE UNDER ARTICLE 9
C. PROBLEMS WITH ARTICLE 9 SALE PROCEDURE
1. FAILURE TO SELL THE COLLATERAL
2. THE REQUIREMENT OF NOTICE OF SALE
IN RE DOWNING
3. THE REQUIREMENT OF A COMMERCIALLY REASONABLE SALE
CHAVERS V. FRAZIER
D. ARTICLE 9 SALE PROCEDURE: A FUNCTIONAL ANALYSIS
PROBLEM SET 47
CHAPTER 14. CREDITORS REMEDIES IN BANKRUPTCY
ASSIGNMENT 48: BANKRUPTCY AND THE AUTOMATIC STAY
A. THE FEDERAL BANKRUPTCY SYSTEM
B. FILING A BANKRUPTCY CASE
C. STOPPING CREDITORS COLLECTION ACTIVITIES
D. LIFTING THE STAY FOR SECURED CREDITORS
IN RE CRADDOCK-TERRY SHOE CORPORATION
E. STRATEGIC USES OF STAY LITIGATION
PROBLEM SET 48
ASSIGNMENT 49: THE TREATMENT OF SECURED CREDITORS IN
BANKRUPTCY
A. THE VOCABULARY OF BANKRUPTCY CLAIMS
B. THE CLAIMS PROCESS
C. CALCULATING THE AMOUNT OF AN UNSECURED CLAIM
D. PAYMENTS ON UNSECURED CLAIMS
E. CALCULATING THE AMOUNT OF A SECURED CLAIM
F. SELLING THE COLLATERAL
G. WHO PAYS THE EXPENSES OF SALE BY THE TRUSTEE?
H. CHAPTERS 11 AND 13 REORGANIZATIONS
I. VALUING FUTURE PAYMENTS
TILL V. SCS CREDIT CORPORATION
PROBLEM SET 49
769
769
770
771
771
772
772
774
775
580
781
785
785
785
786
789
791
795
801
802
804
804
806
808
809
811
812
813
815
816
817
820
CHAPTER 15. CREATION OF SECURITY INTERESTS 823
ASSIGNMENT 50: FORMALITIES FOR ATTACHMENT 823
A. A PROTOTYPICAL SECURED TRANSACTION 823
FISHERMAN S PIER: A PROTOTYPICAL SECURED TRANSACTION 824
B. FORMALITIES FOR ARTICLE 9 SECURITY INTERESTS 826
1. POSSESSION OR AUTHENTICATED SECURITY AGREEMENT 826
IN RE THOMPSON (WIEBERG V. THOMPSON) 828
IN RE ACE LUMBER SUPPLY, INC. 830
2. VALUE HAS BEEN GIVEN 836
3. THE DEBTOR HAS RIGHTS IN THE COLLATERAL 837
XXVIII
C. FORMALITIES FOR REAL ESTATE MORTGAGES
OHIO REVISED CODE ANN.
PROBLEM SET 50
ASSIGNMENT 51: WHAT COLLATERAL AND OBLIGATIONS ARE COVERED?
A. INTERPRETING SECURITY AGREEMENTS
1. DEBTOR AGAINST CREDITOR
2. CREDITOR AGAINST THIRD PARTY
3. INTERPRETING DESCRIPTIONS OF COLLATERAL
B. SUFFICIENCY OF DESCRIPTION: ARTICLE 9 SECURITY AGREEMENTS
IN RE SHIREL
C. DESCRIBING AFTER-ACQUIRED PROPERTY
STOUMBOS V. KILIMNIK
D. SUFFICIENCY OF DESCRIPTION: REAL ESTATE MORTGAGES
E. WHAT OBLIGATIONS ARE SECURED?
PROBLEM SET 51
ASSIGNMENT 52: PROCEEDS, PRODUCTS, AND OTHER VALUE-TRACING
CONCEPTS
A. PROCEEDS
1. DEFINITION
2. TERMINATION OF SECURITY INTEREST IN THE COLLATERAL AFTER
AUTHORIZED DISPOSITION
3. CONTINUATION OF SECURITY INTEREST IN THE COLLATERAL
AFTER UNAUTHORIZED DISPOSITION
ILLINOIS REVISED STATUTES
NEW YORK PENAL LAW
4. LIMITATIONS ON THE SECURED CREDITOR S ABILITY TO
TRACE COLLATERAL
IN RE ORIENTAL RUG WAREHOUSE CLUB, INC.
B. OTHER VALUE-TRACING CONCEPTS
C. NON-VALUE TRACING CONCEPTS
PROBLEM SET 52
ASSIGNMENT 53: TRACING COLLATERAL VALUE DURING BANKRUPTCY
A. DISTINGUISHING PROCEEDS FROM AFTER-ACQUIRED PROPERTY
IN RE DELBRIDGE
IN RE HOTEL SIERRA VISTA LIMITED PARTNERSHIP
B. CASH COLLATERAL IN BANKRUPTCY
PROBLEM SET 53
CONTENTS
839
839
839
843
843
843
844
844
845
845
848
849
851
852
853
856
857
857
859
860
861
862
864
865
868
869
869
872
872
873
878
880
882
CHAPTER 16. DEFAULT: THE GATEWAY TO REMEDIES 885
ASSIGNMENT 54: DEFAULT, ACCELERATION, AND CURE UNDER STATE LAW 885
A. DEFAULT 885
STANDARD DEFAULT PROVISIONS 885
B. WHEN IS PAYMENT DUE? 886
CONTENTS XXIX
1. INSTALLMENT LOANS 887
2. SINGLE-PAYMENT LOANS 887
3. LINES OF CREDIT 888
C. ACCELERATION AND CURE 889
1. ACCELERATION 889
2. LIMITS ON THE ENFORCEABILITY OF ACCELERATION CLAUSES 890
F.R. HALE CONTRACTING CO. V. UNITED NEW MEXICO BANK
AT ALBUQUERQUE 890
3. THE DEBTOR S RIGHT TO CURE 895
OLD REPUBLIC INSURANCE CO. V. LEE 895
REINSTATEMENT 896
D. THE ENFORCEABILITY OF PAYMENT TERMS 896
KHAM & NATE S SHOES NO. 2, INC. V. FIRST BANK OF WHITING 898
E. PROCEDURES AFTER DEFAULT 901
FIGURE 54.1 * THE SPIDER AD 402
PROBLEM SET 54 903
ASSIGNMENT 55: DEFAULT, ACCELERATION, AND CURE UNDER
BANKRUPTCY LAW 906
IN RE MOFFETT (TIDEWATER FINANCE CO. V. MOFFETT) 906
A. STAGE 1: PROTECTION OF THE DEFAULTING DEBTOR PENDING
REORGANIZATION 909
B. STAGE 2: REINSTATEMENT AND CURE 910
1. MODIFICATION DISTINGUISHED FROM REINSTATEMENT
AND CURE 910
2. REINSTATEMENT AND CURE UNDER CHAPTER 11 911
3. REINSTATEMENT AND CURE UNDER CHAPTER 13 912
4. WHEN IS IT TOO LATE TO FILE BANKRUPTCY TO REINSTATE
AND CURE? 914
IN RE DESENO 914
C. BINDING LENDERS IN THE ABSENCE OF A FIXED SCHEDULE FOR
REPAYMENT 918
PROBLEM SET 55 918
CHAPTER 17. THE PROTOTYPICAL SECURED TRANSACTION 921
ASSIGNMENT 56: THE PROTOTYPICAL SECURED TRANSACTION 921
A. THE PARTIES 921
B. DEUTSCHE APPROVES BONNIE S LOAN 922
C. DEUTSCHE AND BONNIE S DOCUMENT THE LOAN 923
1. SECURITY AGREEMENT AND STATEMENT OF TRANSACTION 923
FIGURE 56.1 * STATEMENT OF TRANSACTION 931
2. THE FINANCING STATEMENT 932
FIGURE 56.2*U.C.C.-L FINANCING STATEMENT 932
3. THE PERSONAL GUARANTEE 933
D. BONNIE S BUYS SOME BOATS 933
1. THE FLOORPLAN AGREEMENT 933
2. THE BUY 936
E. BONNIE S SELLS A BOAT 937
XXX CONTENTS
F. MONITORING THE EXISTENCE OF THE COLLATERAL 937
PROBLEM SET 56 938
PART TWO
THE CREDITOR-THIRD PARTY RELATIONSHIP 943
CHAPTER 18. PERFECTION 945
ASSIGNMENT 57: THE PERSONAL PROPERTY FILING SYSTEMS 945
A. COMPETITION FOR THE SECURED CREDITOR S COLLATERAL 945
B. WHAT IS PRIORITY? 946
PEERLESS PACKING CO. V. MALONE & HYDE, INC. 947
C. HOW DO CREDITORS GET PRIORITY? 949
D. THE THEORY OF THE FILING SYSTEM 951
E. THE MULTIPLICITY OF FILING SYSTEMS 952
NATIONAL PEREGRINE, INC. V. CAPITOL FEDERAL SAVINGS AND LOAN
ASSOCIATION OF DENVER (IN RE PEREGRINE ENTERTAINMENT, LIMITED) 953
IN RE: PASTEURIZED EGGS CORPORATION (PASTEURIZED EGGS
CORPORATION V. BON DENTE JOINT VENTURE) 959
F. METHODS AND COSTS OF SEARCHING 960
PROBLEM SET 57 961
ASSIGNMENT 58: ARTICLE 9 FINANCING STATEMENTS: THE DEBTOR S
NAME 964
A. THE COMPONENTS OF A FILING SYSTEM 964
1. FINANCING STATEMENTS 965
2. THE INDEX 966
3. SEARCH SYSTEMS 967
B. CORRECT NAMES FOR USE ON FINANCING STATEMENTS 968
1. INDIVIDUAL NAMES 969
IN RE KINDERKNECHT (CLARK V. DEERE AND CO.) 970
2. CORPORATE NAMES 972
3. PARTNERSHIP NAMES 973
4. TRADE NAMES 973
5. THE ENTITY PROBLEM 974
C. ERRORS IN THE DEBTOR S NAMES ON FINANCING STATEMENTS 974
IN RE SPEARING TOOL AND MANUFACTURING CO., INC.
(UNITED STATES V. CRESTMARK BANK) 976
PROBLEM SET 58 979
ASSIGNMENT 59: ARTICLE 9 FINANCING STATEMENTS: OTHER INFORMATION 981
A. INTRODUCTION 981
B. FILING OFFICE ERRORS IN ACCEPTANCE OR REJECTION 982
1. WRONGLY ACCEPTED FILINGS 982
2. WRONGLY REJECTED FILINGS 983
C. FILER ERRORS IN ACCEPTED FILINGS 983
1. INFORMATION NECESSARY ONLY TO QUALIFY FOR FILING 983
CONTENTS XXXI
2. REQUIRED INFORMATION 984
IN RE PICKLE LOGGING, INC. (DEERE CREDIT, INC. V. PICKLE
LOGGING, INC.) 988
D. AUTHORIZATION TO FILE A FINANCING STATEMENT 989
E. U.C.C. INSURANCE 991
PROBLEM SET 59 991
ASSIGNMENT 60: EXCEPTIONS TO THE ARTICLE 9 FILING REQUIREMENT 994
A. COLLATERAL IN THE POSSESSION OF THE SECURED PARTY 994
1. THE POSSESSION-GIVES-NOTICE THEORY 994
2. WHAT IS POSSESSION? 996
3. POSSESSION AS A MEANS OF PERFECTION 997
B. COLLATERAL IN THE CONTROL OF THE SECURED PARTY 999
C. PURCHASE-MONEY SECURITY INTERESTS IN CONSUMER GOODS 1000
1. PURCHASE MONEY SECURITY INTEREST (PMSI) 1000
2. CONSUMER GOODS 1001
GALLATIN NATIONAL BANK V. LOCKOVICH (IN RE LOCKOVICH) 1002
D. SECURITY INTERESTS NOT GOVERNED BY ARTICLE 9 OR
ANOTHER FILING STATUTE 1005
BLUXOME STREET ASSOCIATES V. FIREMAN S FUND INSURANCE CO. 1006
E. WHAT BECAME OF THE NOTICE REQUIREMENT? 1008
PROBLEM SET 60 1008
CHAPTER 19. MAINTAINING PERFECTION 1011
ASSIGNMENT 61: MAINTAINING PERFECTION THROUGH LAPSE
AND BANKRUPTCY 1011
A. REMOVING FILINGS FROM THE PUBLIC RECORD 1011
1. SATISFACTION 1011
ARIZONA REVISED STATUTES ANNOTATED 1012
FLORIDA STATES ANNOTATED 1013
2. RELEASE 1013
3. ARTICLE 9 TERMINATION AND RELEASE 1014
B. SELF-CLEARING AND CONTINUATION IN THE ARTICLE 9 FILING
SYSTEM 1015
WORTHEN BANK & TRUST CO., N.A. V. HILYARD DRILLING CO.
(IN RE HILYARD DRILLING CO.) 1017
C. THE EFFECT OF BANKRUPTCY ON LAPSE AND CONTINUATION 1021
IN RE SCHWINN CYCLING AND FITNESS, INC. (EXPEDITORS
INTERNATIONAL OF WASHINGTON, INC. V. THE LIQUIDATING TRUST) 1022
PROBLEM SET 61 1024
ASSIGNMENT 62: MAINTAINING PERFECTION THROUGH CHANGES OF
NAME, IDENTITY, AND USE 1027
A. CHANGES IN THE DEBTOR S NAME 1028
B. CHANGES AFFECTING THE DESCRIPTION OF COLLATERAL 1030
C. EXCHANGE OF THE COLLATERAL 1032
1. BARTER TRANSACTIONS 1032
XXXII
NATIONAL BANK OF ALASKA V. ERICKSON (IN RE SEAWAY
EXPRESS CORPORATION)
2. COLLATERAL TO CASH PROCEEDS TO NONCASH PROCEEDS
3. COLLATERAL TO CASH PROCEEDS (NO NEW PROPERTY)
PROBLEM SET 62
ASSIGNMENT 63: MAINTAINING PERFECTION THROUGH RELOCATION OF
DEBTOR OR COLLATERAL
A. STATE-BASED FILING IN A NATIONAL ECONOMY
B. INITIAL PERFECTION
1. AT THE LOCATION OF THE DEBTOR
LYNN M. LOPUCKI, WHY THE DEBTOR S STATE OF INCORPORATION
SHOULD BE THE PROPER PLACE FOR ARTICLE 9 FILING:
A SYSTEMS ANALYSIS
2. AT THE LOCATION OF THE COLLATERAL
C. RELOCATION OF THE DEBTOR
D. NATION-BASED FILING IN A WORLD ECONOMY
PROBLEM SET 63
ASSIGNMENT 64: MAINTAINING PERFECTION IN CERTIFICATE OF TITLE
SYSTEMS
FIGURE 64.1 * SAMPLE CERTIFICATE OF TITLE
NEW ZEALAND LAW COMMISSION, MOTOR VEHICLE TITLE SYSTEMS IN
THE USA AND CANADA
A. PERFECTION IN A CERTIFICATE OF TITLE SYSTEM
B. ACCESSIONS AND REMOVALS
C. IN WHAT STATE SHOULD A MOTOR VEHICLE BE TITLED?
D. MOTOR VEHICLE REGISTRATION
FIGURE 64.2*SAMPLE VEHICLE REGISTRATION
E. MAINTAINING PERFECTION ON INTERSTATE MOVEMENT OF
COLLATERAL
1. HOW IT IS SUPPOSED TO WORK
2. SOME THINGS THAT CAN GO WRONG
3. MOVEMENT OF GOODS BETWEEN NON-CERTIFICATE
AND CERTIFICATE JURISDICTIONS
PROBLEM SET 64
CHAPTER 20. PRIORITY
ASSIGNMENT 65: THE CONCEPT OF PRIORITY: STATE LAW
A. PRIORITY IN FORECLOSURE
B. RECONCILING INCONSISTENT PRIORITIES
BANK LEUMI TRUST CO. OF NEW YORK V. LIGGETT
C. THE RIGHT TO POSSESSION BETWEEN LIEN HOLDERS
THE GROCERS SUPPLY CO. V. INTERCITY INVESTMENT PROPERTIES, INC.
FRIERSON V. UNITED FARM AGENCY, INC.
PROBLEM SET 65
CONTENTS
1034
1036
1037
1037
1039
1039
1040
1040
1041
1043
1043
1045
1048
1050
1051
1052
1055
1056
1058
1059
1060
1060
1060
1061
1062
1063
1067
1067
1067
1070
1071
1073
1074
1075
1077
CONTENTS XXXIII
CHAPTER 21. COMPETITIONS FOR COLLATERAL 1081
ASSIGNMENT 66: LIEN CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
1081
A. HOW CREDITORS BECOME LIEN CREDITORS 1081
JUDGMENT LIENS ON REAL AND PERSONAL PROPERTY 1082
B. PRIORITY AMONG LIEN CREDITORS 1083
PREFERENCE BETWEEN WRITS OF EXECUTION 1084
C. PRIORITY BETWEEN LIEN CREDITORS AND SECURED CREDITORS 1084
PEOPLE V. GREEN 1085
D. PRIORITY BETWEEN LIEN CREDITORS AND MORTGAGE CREDITORS 1088
E. PURCHASE-MONEY PRIORITY 1088
PROBLEM SET 66 1089
ASSIGNMENT 67: LIEN CREDITORS AGAINST SECURED CREDITORS:
FUTURE ADVANCES 1092
A. PRIORITY OF FUTURE ADVANCES: PERSONAL PROPERTY 1092
B. PRIORITY OF NONADVANCES: PERSONAL PROPERTY 1094
UNI IMPORTS, INC. V. EXCHANGE NATIONAL BANK OF CHICAGO 1094
C. PRIORITY OF FUTURE ADVANCES AND NONADVANCES:
REAL PROPERTY 1098
SHUTZE V. CREDITHRIFT OF AMERICA, INC. 1098
PROBLEM SET 67 1103
ASSIGNMENT 68: SECURED CREDITORS AGAINST SECURED CREDITORS:
THE BASICS 1106
A. THE BASIC RULE: FIRST TO FILE OR PERFECT 1106
B. PRIORITY OF FUTURE ADVANCES 1108
C. PRIORITY IN AFTER-ACQUIRED PROPERTY 1110
D. PRIORITY OF PURCHASE-MONEY SECURITY INTERESTS 1111
1. PURCHASE-MONEY SECURITY INTERESTS GENERALLY 1111
2. PURCHASE-MONEY SECURITY INTERESTS IN INVENTORY 1114
E. PURCHASE-MONEY PRIORITY IN PROCEEDS 1115
F. PRIORITY IN COMMINGLED COLLATERAL 1116
PROBLEM SET 68 1117
ASSIGNMENT 69: BUYERS AGAINST SECURED CREDITORS 1122
A. INTRODUCTION 1122
B. BUYERS OF REAL PROPERTY 1123
C. BUYERS OF PERSONAL PROPERTY 1124
1. THE AUTHORIZED DISPOSITION EXCEPTION: U.C.C.
§9-315(A)(L) 1124
RFC CAPITAL CORPORATION V. EARTHLINK, INC. 1125
2. THE BUYER-IN-THE-ORDINARY-COURSE EXCEPTION: U.C.C.
§9-320(A) 1128
DANIEL V. BANK OF HAYWARD 1131
XXXIV CONTENTS
3. THE BUYER-NOT-IN-THE-ORDINARY-COURSE EXCEPTION:
U.C.C. §§9-323(D) AND (E) AND 9-317(B) 1136
4. THE CONSUMER-TO-CONSUMER SALE EXCEPTION:
U.C.C. §9-320(B) 1137
PROBLEM SET 69 1138
TABLE OF CASES 1143
TABLE OF STATUTES AND REGULATIONS 1153
INDEX 1171
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SUMMARY OF CONTENTS
CONTENTS
ACKNOWLEDGMENTS
INTRODUCTION
XV
XXXV
XXXIX
BOOK ONE
SALES SYSTEMS
CHAPTER 1.
ASSIGNMENT 1:
ASSIGNMENT 2:
ASSIGNMENT 3:
ASSIGNMENT 4:
ASSIGNMENT 5:
ASSIGNMENT 6:
ASSIGNMENT 7:
CHAPTER 2.
ASSIGNMENT 8:
ASSIGNMENT 9:
ASSIGNMENT 10:
ASSIGNMENT 11:
ASSIGNMENT 12:
CHAPTER 3.
ASSIGNMENT 13:
ASSIGNMENT 14:
ASSIGNMENT 15:
ASSIGNMENT 16:
FORMATION 3
THE ROLE AND SCOPE OF CODES IN SALES SYSTEMS 3
SCOPE ISSUES WITH LEASES, CISG, AND REAL ESTATE 22
THE PROCESS OF SALES CONTRACT FORMATION 40
FORMATION WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE 61
STATUTE OF FRAUDS WITH SALES OF GOODS 76
PAROL EVIDENCE WITH SALES OF GOODS 91
REQUISITES TO FORMALIZATION IN LEASES,
INTERNATIONAL SALES, AND REAL ESTATE SALES 102
TERMS 115
WARRANTIES WITH SALES OF GOODS 115
LEASE, INTERNATIONAL, AND REAL ESTATE WARRANTIES 133
REDUCING OR ELIMINATING WARRANTY LIABILITY: BASICS 146
COMMERCIAL IMPRACTICABILITY 160
UNCONSCIONABILITY 175
PERFORMANCE 183
CLOSING THE SALE WITH SALES OF GOODS 183
CLOSING WITH LEASES, INTERNATIONAL SALES, AND
REAL ESTATE 197
RISK OF LOSS WITH SALES OF GOODS 212
RISK OF LOSS WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE 225
SUMMARY OF CONTENTS
CHAPTER 4.
ASSIGNMENT 1 7:
ASSIGNMENT 18:
ASSIGNMENT 19:
ASSIGNMENT 20:
REMEDIES
SELLER'S REMEDIES WITH SALES OF GOODS
LESSOR'S AND SELLER'S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE
BUYER'S REMEDIES WITH SALES OF GOODS
BUYER'S AND LESSEE'S REMEDIES WITH LEASES,
235
235
250
263
INTERNATIONAL SALES, AND REAL ESTATE
BOOK TWO
FINANCIAL SYSTEMS
PART ONE
PAYMENT SYSTEMS
276
287
289
CHAPTER 5.
ASSIGNMENT 21:
ASSIGNMENT 22:
ASSIGNMENT 23:
ASSIGNMENT 24:
ASSIGNMENT 25:
ASSIGNMENT 26:
CHAPTER 6.
ASSIGNMENT 27:
ASSIGNMENT 28:
ASSIGNMENT 29:
ASSIGNMENT 30:
ASSIGNMENT 31:
CHAPTER 7.
ASSIGNMENT 32:
CHECKING ACCOUNTS AS THE PARADIGM
PAYMENT SYSTEM
THE BASIC CHECKING RELATIONSHIP AND THE
BANK'S RIGHT TO PAY CHECKS
THE BANK'S OBLIGATION TO PAY CHECKS
COLLECTION OF CHECKS
RISK OF LOSS IN THE CHECKING SYSTEM - THE BASIC
FRAMEWORK
RISK OF LOSS IN THE CHECKING SYSTEM - SPECIAL
RULES
TRUNCATION AND CHECK 21
ELECTRONIC PAYMENTS
THE CREDIT-CARD SYSTEM
ERROR AND FRAUD IN CREDIT-CARD TRANSACTIONS
DEBIT CARDS
THE WIRE-TRANSFER SYSTEM
ERROR IN WIRE-TRANSFER TRANSACTIONS
DEVELOPING PAYMENT SYSTEMS
INTERNET PAYMENTS
295
295
309
329
365
381
403
413
413
427
446
465
489
507
507
SUMMARY OF CONTENTS
XI
CHAPTER 8.
ASSIGNMENT 33:
ASSIGNMENT 34:
PART TWO
CREDIT SYSTEMS
CHAPTER 9.
ASSIGNMENT 35:
CHAPTER 10.
ASSIGNMENT 36:
ASSIGNMENT 37:
ASSIGNMENT 38:
LETTERS OF CREDIT
LETTERS OF CREDIT - THE BASICS
LETTERS OF CREDIT - ADVANCED TOPICS
THE BORROWER'S OBLIGATION
PROMISSORY NOTES AND INTEREST RATES
CREDIT ENHANCEMENT
CREDIT ENHANCEMENT BY GUARANTY
PROTECTIONS FOR GUARANTORS
THIRD-PARTY CREDIT ENHANCEMENT - STANDBY
LETTERS OF CREDIT
529
529
548
559
563
563
577
577
590
606
PART THREE
SYSTEMS FOR ENHANCING LIQUIDITY
CHAPTER 11.
ASSIGNMENT 39:
ASSIGNMENT 40:
NEGOTIABILITY
NEGOTIABLE INSTRUMENTS
TRANSFER AND ENFORCEMENT OF NEGOTIABLE
INSTRUMENTS
ASSIGNMENT 41: HOLDERS IN DUE COURSE
CHAPTER 12. SECURITIZATION
ASSIGNMENT 42: SECURITIZATION
BOOK THREE
SECURED CREDIT
623
625
625
643
659
675
675
693
PART ONE
THE CREDITOR-DEBTOR RELATIONSHIP
695
CHAPTER 13.
ASSIGNMENT 43:
CREDITORS' REMEDIES UNDER STATE LAW 697
REMEDIES OF UNSECURED CREDITORS UNDER STATE LAW 697
XII
ASSIGNMENT 44:
ASSIGNMENT 45:
ASSIGNMENT 46:
ASSIGNMENT 47:
CHAPTER 14.
ASSIGNMENT 48:
ASSIGNMENT 49:
CHAPTER 15.
ASSIGNMENT 50:
ASSIGNMENT 51:
ASSIGNMENT 52:
ASSIGNMENT 53:
CHAPTER 16.
ASSIGNMENT 54:
ASSIGNMENT 55:
CHAPTER 1 7.
ASSIGNMENT 56:
SUMMARY OF CONTENTS
SECURITY AND FORECLOSURE
REPOSSESSION OF COLLATERAL
JUDICIAL SALE AND DEFICIENCY
ARTICLE 9 SALE AND DEFICIENCY
CREDITORS' REMEDIES IN BANKRUPTCY
BANKRUPTCY AND THE AUTOMATIC STAY
THE TREATMENT OF SECURED CREDITORS IN BANKRUPTCY
CREATION OF SECURITY INTERESTS
FORMALITIES FOR ATTACHMENT
WHAT COLLATERAL AND OBLIGATIONS ARE COVERED?
PROCEEDS, PRODUCTS, AND OTHER VALUE-TRACING
CONCEPTS
TRACING COLLATERAL VALUE DURING BANKRUPTCY
DEFAULT: THE GATEWAY TO REMEDIES
DEFAULT, ACCELERATION, AND CURE UNDER STATE LAW
DEFAULT, ACCELERATION, AND CURE UNDER
BANKRUPTCY LAW
THE PROTOTYPICAL SECURED TRANSACTION
THE PROTOTYPICAL SECURED TRANSACTION
714
729
749
769
785
785
' 804
823
823
843
856
872
885
885
906
921
921
PART TWO
THE CREDITOR-THIRD PARTY RELATIONSHIP
CHAPTER 18.
ASSIGNMENT 57:
ASSIGNMENT 58:
ASSIGNMENT 59:
ASSIGNMENT 60:
CHAPTER 19.
ASSIGNMENT 61:
PERFECTION
THE PERSONAL PROPERTY FILING SYSTEMS
ARTICLE 9 FINANCING STATEMENTS: THE DEBTOR'S
NAME
943
945
945
964
ARTICLE 9 FINANCING STATEMENTS: OTHER INFORMATION 981
EXCEPTIONS TO THE ARTICLE 9 FILING REQUIREMENT 994
MAINTAINING PERFECTION 1011
MAINTAINING PERFECTION THROUGH LAPSE AND
BANKRUPTCY 1011
SUMMARY OF CONTENTS
XIII
ASSIGNMENT 62:
ASSIGNMENT 63:
ASSIGNMENT 64:
CHAPTER 20.
ASSIGNMENT 65:
CHAPTER 21.
ASSIGNMENT 66:
ASSIGNMENT 67:
ASSIGNMENT 68:
ASSIGNMENT 69:
TABLE OF CASES
TABLE OF STATUTES AND
INDEX
MAINTAINING PERFECTION THROUGH CHANGES
OF NAME, IDENTITY, AND USE
MAINTAINING PERFECTION THROUGH RELOCATION OF
DEBTOR OR COLLATERAL
MAINTAINING PERFECTION IN CERTIFICATE OF TITLE
SYSTEMS
PRIORITY
THE CONCEPT OF PRIORITY: STATE LAW
COMPETITIONS FOR COLLATERAL
LIEN CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
LIEN CREDITORS AGAINST SECURED CREDITORS:
FUTURE ADVANCES
SECURED CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
BUYERS AGAINST SECURED CREDITORS
REGULATIONS
1027
1039
1050
1067
1067
1081
1081
1092
1106
1122
1143
1153
1171
CONTENTS
ACKNOWLEDGMENTS XXXV
INTRODUCTION XXXIX
BOOK ONE
SALES SYSTEMS 1
CHAPTER 1. FORMATION 3
ASSIGNMENT 1: THE ROLE AND SCOPE OF CODES IN SALES SYSTEMS 3
A. FUNDAMENTAL ASPECTS OF SALES 3
B. THE REAL WORLD OF SALES 4
C. FUNCTIONS OF A CODE IN SALES SYSTEMS 6
D. SCOPE OF ARTICLE 2 8
RAGUS CO. V. CITY OF CHICAGO 11
DAKOTA PORK INDUS, V. CITY OF HURON 13
COOK V. DOWNING 15
PROBLEM SET 1 19
ASSIGNMENT 2: SCOPE ISSUES WITH LEASES, CISC,
AND REAL ESTATE 22
A. SCOPE OF ARTICLE 2A 22
CARLSON V. GIACHETTI 24
IN RE BAILEY 27
B. SCOPE OF THE CISG 34
VIVA VINO IMPORT CORP. V. FARNESE VINI S.R.L. 34
C. REAL ESTATE 36
PROBLEM SET 2 37
ASSIGNMENT 3: THE PROCESS OF SALES CONTRACT FORMATION 40
HILL V. GATEWAY 2000, INC. 40
IONICS, INC. V. ELMWOOD SENSORS, INC. 48
PROBLEM SET 3 58
ASSIGNMENT 4: FORMATION WITH LEASES, INTERNATIONAL
SALES, AND REAL ESTATE 61
A. FORMATION OF CONTRACTS FOR LEASES 61
B. FORMATION OF CONTRACTS FOR INTERNATIONAL SALES 62
FILANTO V. CHILEWICH INTERNATIONAL CORP. 63
C. FORMATION OF REAL ESTATE CONTRACTS 65
ALBRIGHT V. MCDERMOND 66
MESSIER V. PHILLIPS 71
PROBLEM SET 4 74
XVI
ASSIGNMENT 5: STATUTE OF FRAUDS WITH SALES OF GOODS
DF ACTIVITIES CORP. V. BROWN
GENERAL TRADING INT'L V. WAL-MART STORES
PROBLEM SET 5
ASSIGNMENT 6: PAROL EVIDENCE WITH SALES OF GOODS
BETACO, INC. V. CESSNA AIRCRAFT CO.
C-THRU CONTAINER CORP. V. MIDLAND MFG. CO.
PROBLEM SET 6
ASSIGNMENT 7: REQUISITES TO FORMALIZATION IN LEASES,
INTERNATIONAL SALES, AND REAL ESTATE SALES
A. REQUISITES TO FORMALIZATION IN LEASES
B. REQUISITES TO FORMALIZATION IN INTERNATIONAL SALES
MCC-MARBLE CERAMIC CENTER, INC. V. CERAMICA NUOVA
D'AGOSTINO, S.P.A.
C. REQUISITES TO FORMALIZATION IN THE REAL ESTATE SYSTEM
HOLBROOK V. HOLBROOK
PROBLEM SET 7
CHAPTER 2. TERMS
ASSIGNMENT 8: WARRANTIES WITH SALES OF GOODS
A. THE EFFECTS OF WARRANTY LAW ON BUSINESS PRACTICE
B. THE BASIC UCC QUALITY WARRANTIES
PHILLIPS V. CRICKET LIGHTERS
LEAL V. HOLTVOGT
C. EXTENDED WARRANTIES AND MAINTENANCE AGREEMENTS
PROBLEM SET 8
ASSIGNMENT 9: LEASE, INTERNATIONAL, AND REAL ESTATE WARRANTIES
A. LEASE WARRANTIES: THE CASE OF FINANCE LEASES
B. WARRANTIES WITH INTERNATIONAL SALES
MEDICAL MARKETING INT'L V. INTEMAZIONALE MEDICO SCIENTIFICA
C. REAL ESTATE WARRANTIES
1. WARRANTIES GENERALLY
HERSHEY V. RICH ROSEN CONSTRUCTION CO.
2. THIRD-PARTY HOME WARRANTIES
PROBLEM SET 9
ASSIGNMENT 10: REDUCING OR ELIMINATING WARRANTY
LIABILITY: BASICS
A. WARRANTY REDUCTION WITH SALES OF GOODS
WILBUR V. TOYOTA MOTOR SALES, U.S.A.
B. WARRANTY REDUCTION WITH LEASES
C. WARRANTY REDUCTION WITH INTERNATIONAL SALES
SUPERMICRO COMPUTER, INC. V. DIGITECHNIC, S.A.
D. DISCLAIMING THE REAL ESTATE IMPLIED WARRANTY
OF HABITABILITY
AXLINE V. KUTNER
PROBLEM SET 10
CONTENTS
76
79
84
89
91
91
97
100
102
102
103
103
108
109
112
115
115
115
116
117
121
129
130
133
133
134
135
136
136
137
143
143
146
146
149
152
153
154
155
156
157
CONTENTS XVII
ASSIGNMENT 11: COMMERCIAL IMPRACTICABILITY
A. COMMERCIAL IMPRACTICABILITY WITH SALES OF GOODS
RESOURCES INVESTMENT CORP. V. ENRON CORP.
ALAMANCE COUNTY BD. OFEDUC. V. BOBBY MURRAY CHEVROLET
B. COMMERCIAL IMPRACTICABILITY WITH LEASES
C. COMMERCIAL IMPRACTICABILITY WITH INTERNATIONAL
SALES
D. COMMERCIAL IMPRACTICABILITY WITH REAL ESTATE
PROBLEM SET 11
ASSIGNMENT 12: UNCONSCIONABILITY
A. UNCONSCIONABILITY WITH SALES OF GOODS
MAXWELL V. FIDELITY FINANCIAL SERVICES, INC.
B. UNCONSCIONABILITY WITH LEASES
BMW FINANCIAL SERVICES V. SMOKE RISE CORP.
C. UNCONSCIONABILITY WITH INTERNATIONAL SALES
D. UNCONSCIONABILITY WITH REAL ESTATE
PROBLEM SET 12
CHAPTER 3. PERFORMANCE
ASSIGNMENT 13: CLOSING THE SALE WITH SALES OF GOODS
NORTH AMERICAN LIGHTING, INC. V. HOPKINS MANUFACTURING CORP.
BERNING V. DRUMWRIGHT
PROBLEM SET 13
ASSIGNMENT 14: CLOSING WITH LEASES, INTERNATIONAL SALES,
AND REAL ESTATE
A. CLOSING WITH LEASES
COLONIAL PACIFIC LEASING CORP. V. F.W.CJ.R. CORP.
B. CLOSING WITH INTERNATIONAL SALES
DELCHI CARRIER SPA V. ROTOREX CORP.
C. REAL ESTATE CLOSINGS
GRAY V. FIRST NH BANKS
PROBLEM SET 14
ASSIGNMENT 15: RISK OF LOSS WITH SALES OF GOODS
COOK SPECIALTY CO. V. SCHRLOCK
DESIGN DATA CORP. V. MARYLAND CASUALTY CO.
PROBLEM SET 15
ASSIGNMENT 16: RISK OF LOSS WITH LEASES, INTERNATIONAL
SALES, AND REAL ESTATE
A. RISK OF LOSS WITH LEASES
B. RISK OF LOSS WITH INTERNATIONAL SALES
BP OIL INT'L V. EMPRESA ESTATAL PETROLEOS DE ECUADOR
C. RISK OF LOSS WITH REAL ESTATE
VOORDE POORTE V. EVANS
PROBLEM SET 16
160
160
161
164
170
171
172
172
175
175
176
179
179
180
181
181
183
183
186
190
194
197
197
197
202
203
205
206
210
212
214
218
221
225
225
225
226
229
230
232
XVIII CONTENTS
CHAPTER 4. REMEDIES 235
ASSIGNMENT 17: SELLER'S REMEDIES WITH SALES OF GOODS 235
1. WHY DO LEGAL REMEDIES MATTER AT ALL? 235
2. WHAT ARE A SELLER'S LEGAL REMEDIES? 236
SACK V. LAWTON 238
FIRWOOD MFG. CO. V. GENERAL TIRE 242
PROBLEM SET 17 247
ASSIGNMENT 18: LESSOR'S AND SELLER'S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE 250
A. LESSOR'S REMEDIES 250
C.I.C. CORP. V. RAGTIME, INC. 251
B. SELLER'S REMEDIES WITH INTERNATIONAL SALES 256
C. SELLER'S REMEDIES WITH REAL ESTATE SALES 257
WILLIAMS V. UBALDO 257
PROBLEM SET 18 260
ASSIGNMENT 19: BUYER'S REMEDIES WITH SALES OF GOODS 263
IN RE BEECHE SYSTEMS 266
PROBLEM SET 19 271
ASSIGNMENT 20: BUYER'S AND LESSEE'S REMEDIES WITH LEASES,
INTERNATIONAL SALES, AND REAL ESTATE 276
A. LESSEE'S REMEDIES 276
B. BUYER'S REMEDIES WITH INTERNATIONAL SALES 277
C. BUYER'S REMEDIES WITH REAL ESTATE 279
JUE V. SMISER 280
PROBLEM SET 20 283
BOOK TWO
FINANCIAL SYSTEMS 287
PART ONE
PAYMENT SYSTEMS 289
INTRODUCTION TO PAYMENT SYSTEMS 291
FIGURE 21.1 * BASIC PAYMENT SYSTEM 292
FIGURE 21.2 * PAYMENT BY THIRD PARTY 293
CHAPTER 5. CHECKING ACCOUNTS AS THE PARADIGM
PAYMENT SYSTEM 295
ASSIGNMENT 21: THE BASIC CHECKING RELATIONSHIP AND THE BANK'S
RIGHT TO PAY CHECKS 295
A. THE BASIC RELATIONSHIP 295
FIGURE 21.3 * PAYMENT BY CHECK 296
B. THE BANK'S RIGHT TO PAY 297
1. WHEN IS IT PROPER FOR THE BANK TO PAY? 297
CONTENTS XIX
(A) OVERDRAFTS 298
MCGUIRE V. BANK ONE, LOUISIANA, N.A. 298
(B) STOPPING PAYMENT 302
2. REMEDIES FOR IMPROPER PAYMENT 304
MCLNTYRE V. HARRIS 304
PROBLEM SET 21 306
ASSIGNMENT 22: THE BANK'S OBLIGATION TO PAY CHECKS 309
A. WHEN ARE FUNDS AVAILABLE FOR PAYMENT? 309
1. TIME OF EVALUATION 309
2. AVAILABILITY OF FUNDS 310
FIGURE 22.1 * BASIC FUNDS AVAILABILITY RULES 312
FIGURE 22.2 *LOW-RISK ITEMS AVAILABILITY RULES 314
FIRST NATIONAL BANK V. COLONIAL BANK 317
B. WRONGFUL DISHONOR: WHAT HAPPENS IF THE BANK REFUSES
TO PAY? 319
MAYOTT V. FIRST NATIONAL BANK 320
PROBLEM SET 22 326
ASSIGNMENT 23: COLLECTION OF CHECKS 329
A. THE PAYOR BANK'S OBLIGATION TO THE PAYEE 329
OUTDOOR TECHNOLOGIES, INC. V. ALLFIRST FINANCIAL, INC. 329
B. THE PROCESS OF COLLECTION 334
1. OBTAINING PAYMENT DIRECTLY 335
FIGURE 23.1 * DIRECT PRESENTMENT 336
2. OBTAINING PAYMENT THROUGH INTERMEDIARIES 336
(A) PAYEE/CUSTOMER TO DEPOSITARY BANK 336
(B) DEPOSITARY BANK TO PAYOR BANK 337
(I) MULTILATERAL ARRANGEMENTS (CLEARINGHOUSES) 338
KIMBERLY A. ALLEN TRUST V. FIRSTBANK OF
LAKEWOOD, N.A. 340
FIGURE 23.2 * CLEARINGHOUSE COLLECTION 343
(II) BILATERAL ARRANGEMENTS (DIRECT-SEND AND
CORRESPONDENT CLEARING) 344
(III) COLLECTION THROUGH THE FEDERAL RESERVE
SYSTEM 345
FIGURE 23.3 * DIRECT-SEND COLLECTION 346
FIGURE 23.4 * FEDERAL RESERVE COLLECTION 347
FIGURE 23.5*SAMPLE EARNS NOTICE 350
FIGURE 23.6 *RETURN OBLIGATIONS 351
NBT BANK V. FIRST NATIONAL COMMUNITY BANK 351
PROBLEM SET 23 362
ASSIGNMENT 24: RISK OF LOSS IN THE CHECKING SYSTEM *
THE BASIC FRAMEWORK 365
A. NONPAYMENT 365
FIGURE 24.1 *INDORSER LIABILITY 367
XX CONTENTS
B. FORGED SIGNATURES 367
1. FORGED DRAWERS' SIGNATURES AND THE RULE OF PRICE V. NEAL 368
(A) WHAT IF THE PAYOR BANK PAYS THE FORGED CHECK? 368
DECIBEL CREDIT UNION V. PUEBLO BANK & TRUST COMPANY 369
FIGURE 24.2 * PRESENTMENT AND TRANSFER WARRANTIES 370
(B) WHAT IF THE PAYOR BANK DISHONORS THE
FORGED CHECK? 373
THE SPECIAL CASE OF TELEPHONE CHECKS 374
2. FORGED INDORSEMENTS 375
(A) WHAT IF THE PAYOR BANK DISHONORS THE CHECK
BECAUSE OF THE FORGED INDORSEMENT? 375
(B) WHAT IF THE PAYOR BANK PAYS THE CHECK DESPITE
THE FORGED INDORSEMENT? 375
(C) CONVERSION 377
C. ALTERATION 378
PROBLEM SET 24 378
ASSIGNMENT 25: RISK OF LOSS IN THE CHECKING SYSTEM *
SPECIAL RULES 381
A. NEGLIGENCE 381
HSBC BANK V. F & M BANK NORTHERN VIRGINIA 381
B. BANK STATEMENTS 385
STOWELL V. CLOQUET CO-OP CREDIT UNION 386
C. THEFT BY EMPLOYEES 391
CABLE CAST MAGAZINE V. PREMIER BANK 392
HALIFAX CORP. V. WACHOVIA BANK 395
D. IMPOSTORS 397
MENG V. MAYWOOD PROVISO STATE BANK 398
PROBLEM SET 25 400
ASSIGNMENT 26: TRUNCATION AND CHECK 21 403
A. PAYOR-BANK TRUNCATION 403
FIGURE 26.1*MICR LINE 404
B. DEPOSITORY-BANK TRUNCATION AND THE CHECK 21 ACT 406
FIGURE 26.2*CHECK PROCESSING UNDER CHECK 21 408
FIGURE 26.3 * SUBSTITUTE CHECK 409
PROBLEM SET 26 410
CHAPTER 6. ELECTRONIC PAYMENTS 413
ASSIGNMENT 27: THE CREDIT-CARD SYSTEM 413
A. THE ISSUER-CARDHOLDER RELATIONSHIP 413
B. USING THE CREDIT-CARD ACCOUNT 416
C. COLLECTION BY THE PAYEE 417
1. THE MECHANICS OF COLLECTION 417
FIGURE 27.1 * PAYMENT BY CREDIT CARD 419
FIGURE 27.2 *DIVIDING THE CREDIT-CARD DOLLAR 420
2. FINALITY OF PAYMENT 420
HYLAND V. FIRST USA BANK 422
PROBLEM SET 27 424
CONTENTS XXI
ASSIGNMENT 28: ERROR AND FRAUD IN CREDIT-CARD TRANSACTIONS 427
A. ERRONEOUS CHARGES 427
BELMONT V. ASSOCIATES NATIONAL BANK (DELAWARE) 428
B. UNAUTHORIZED CHARGES 437
MINSKOFFV. AMERICAN EXPRESS TRAVEL RELATED SERVICES CO. 438
PROBLEM SET 28 444
ASSIGNMENT 29: DEBIT CARDS 446
A. PAYMENT WITH A DEBIT CARD 446
1. ESTABLISHING THE DEBIT-CARD RELATIONSHIP 447
2. TRANSFERRING FUNDS WITH A DEBIT CARD 448
3. COLLECTION BY THE PAYEE 448
(A) PIN-BASED DEBIT CARDS 449
(B) PIN-LESS DEBIT CARDS 449
B. ERROR AND FRAUD IN DEBIT-CARD TRANSACTIONS 450
1. ERRONEOUS TRANSACTIONS 451
2. FRAUDULENT TRANSACTIONS 451
HOSPICOMM, INC. V. FLEET BANK, N.A. 456
HERITAGE BANK V. LOVETT 459
PROBLEM SET 29 462
ASSIGNMENT 30: THE WIRE-TRANSFER SYSTEM 465
A. INTRODUCTION 465
B. HOW DOES IT WORK? 466
1. INITIATING THE WIRE TRANSFER: FROM THE ORIGINATOR
TO THE ORIGINATOR'S BANK 466
FIGURE 30.1 * PAYMENT BY WIRE TRANSFER 467
TRUSTMARK INS. CO. V. BANK ONE 467
BANCO DE LA PROVINCIA V. BAYBANK BOSTON, N.A. 472
2. EXECUTING THE TRANSFER: FROM THE ORIGINATOR'S
BANK TO THE BENEFICIARY'S BANK 476
(A) BILATERAL SYSTEMS (INCLUDING SWIFT) 476
(B) CHIPS 477
(C) FEDWIRE 478
FIGURE 30.2*MULTILATERAL NETTING ON CHIPS 478
FIGURE 30.3*SAMPLE FEDWIRE MESSAGE 479
3. COMPLETING THE FUNDS TRANSFER: FROM THE BENEFICIARY'S
BANK TO THE BENEFICIARY 482
C. DISCHARGE OF THE ORIGINATOR'S UNDERLYING OBLIGATION 483
D. FINALITY OF PAYMENT 484
ALEO INTERNATIONAL, LTD. V. CITIBANK, N.A. 484
PROBLEM SET 30 486
ASSIGNMENT 31: ERROR IN WIRE-TRANSFER TRANSACTIONS 489
A. RECOVERING FROM PARTIES IN THE SYSTEM 489
1. ERRORS BY THE ORIGINATOR 490
CORFAN BANCO ASUNCION PARAGUAY V. OCEAN BANK 490
2. ERRORS IN THE SYSTEM 496
(A) SENDING EXCESSIVE FUNDS 496
(B) SENDING INADEQUATE FUNDS 497
XXII
(C) BANK-STATEMENT RULE
B. RECOVERING FROM THE MISTAKEN RECIPIENT
C. FRAUD
PROBLEM SET 31
CHAPTER 7. DEVELOPING PAYMENT SYSTEMS
ASSIGNMENT 32: INTERNET PAYMENTS
A. BACKGROUND
MARK A. LEMLEY & DAVID MCGOWAN, LEGAL IMPLICATIONS
OF NETWORK ECONOMIC EFFECTS
RONALD J. MANN, MAKING SENSE OF PAYMENTS POLICY IN THE
INFORMATION AGE
B. CREDIT CARDS ON THE INTERNET
1. PROCESSING THE TRANSACTIONS
2. PROBLEMS
(A) FRAUD
(B) PRIVACY
(C) MICROPAYMENTS
C. DEBIT CARDS ON THE INTERNET
D. ACH TRANSFERS (WEB ENTRIES)
E. FOREIGN AND CROSS-BORDER PAYMENTS
FIGURE 32.1*ACH "CHECKS"
F. A NOTE ON MOBILE PAYMENTS
PROBLEM SET 32
CONTENTS
498
499
500
503
507
507
507
507
512
516
516
517
517
520
521
522
523
524
525
526
527
CHAPTER 8. LETTERS OF CREDIT 529
ASSIGNMENT 33: LETTERS OF CREDIT - THE BASICS 529
A. THE UNDERLYING TRANSACTION 530
FIGURE 33.1 * IRREVOCABLE COMMERCIAL LETTER OF CREDIT 531
B. ADVISING AND CONFIRMING BANKS 533
FIGURE 33.2 * ISSUING THE LETTER OF CREDIT 533
C. THE TERMS OF THE CREDIT 534
D. DRAWING ON THE CREDIT 536
SAMUEL RAPPAPORT FAMILY PARTNERSHIP V. MERIDIAN BANK 537
CARTER PETROLEUM PRODUCTS, INC. V. BROTHERHOOD BANK & TRUST CO. 540
E. REIMBURSEMENT 545
FIGURE 33.3 * PAYMENT WITH A LETTER OF CREDIT 545
PROBLEM SET 33 545
ASSIGNMENT 34: LETTERS OF CREDIT - ADVANCED TOPICS 548
A. ERROR AND FRAUD IN LETTER-OF-CREDIT TRANSACTIONS 548
1. WRONGFUL HONOR 548
2. WRONGFUL DISHONOR 550
3. FRAUD 552
(A) FORGED DRAFTS 552
(B) FRAUDULENT SUBMISSIONS BY THE BENEFICIARY 552
B. ASSIGNING LETTERS OF CREDIT 554
CONTENTS XXIII
C. CHOICE-OF-LAW RULES 556
PROBLEM SET 34 556
PART TWO
CREDIT SYSTEMS 559
INTRODUCTION TO CREDIT SYSTEMS 561
CHAPTER 9. THE BORROWER'S OBLIGATION 563
ASSIGNMENT 35: PROMISSORY NOTES AND INTEREST RATES 563
A. PROMISSORY NOTES 563
SCHILLACE V. CHANNELL SHOPPING PARTNERSHIP 563
B. DETERMINING THE AMOUNT OF COMPENSATION 569
1. FIXED AND VARIABLE INTEREST RATES 569
2. INTEREST-RATE SWAPS 571
FIGURE 35.1*INTEREST-RATE SWAP 5 72
3. THE ENFORCEABILITY OF INTEREST-RATE AGREEMENTS 572
PROBLEM SET 35 573
CHAPTER 10. CREDIT ENHANCEMENT 577
ASSIGNMENT 36: CREDIT ENHANCEMENT BY GUARANTY 577
A. THE ROLE OF GUARANTIES 577
THOMAS S. HEMMINDINGER, HILLMAN ON COMMERCIAL LOAN
DOCUMENTATION 373-377 579
B. RIGHTS OF THE CREDITOR AGAINST THE GUARANTOR 583
F.T.L., INC. V. CRESTAR BANK (IN RE F.T.L., INC.) 584
PROBLEM SET 36 587
ASSIGNMENT 37: PROTECTIONS FOR GUARANTORS 590
A. RIGHTS OF THE GUARANTOR AGAINST THE PRINCIPAL 590
1. PERFORMANCE 590
2. REIMBURSEMENT 590
FIGURE 37.1 * RIGHTS OF THE GUARANTOR 591
3. SUBROGATION 591
CORPORATE BUYING SERVICE V. LENOX HILL RADIOLOGY ASSOCIATES 592
FIGURE 37.2*GUARANTOR PREFERENCES 595
B. RIGHTS OF THE GUARANTOR AGAINST THE CREDITOR 596
1. SURETYSHIP DEFENSES 596
2. WAIVER OF SURETYSHIP DEFENSES 598
MODERN PHOTO OFFSET SUPPLY V. THE WOODFIELD GROUP 598
C. BANKRUPTCY OF THE GUARANTOR 602
TRIMEC, INC. V. ZALE CORPORATION 602
PROBLEM SET 37 604
ASSIGNMENT 38: THIRD-PARTY CREDIT ENHANCEMENT - STANDBY
LETTERS OF CREDIT 606
A. THE STANDBY LETTER-OF-CREDIT TRANSACTION 606
FIGURE 38.1 * STANDBY LETTERS OF CREDIT 608
XX
J
V
CONTENTS
NOBEL INSURANCE CO. V. FIRST NAT'L. BANK 609
FIGURE 38.2 * FORM STANDBY LETTER OF CREDIT 611
WOOD V. STATE BANK 613
B. PROBLEMS IN STANDBY LETTER-OF-CREDIT TRANSACTIONS 615
1. BANKRUPTCY OF THE APPLICANT 615
IN RE OCANA 616
2. THE ISSUER'S RIGHT OF SUBROGATION 618
CCF, INC. V. FIRST NATIONAL BANK (IN RE SLAMANS) 618
PROBLEM SET 38 620
PART THREE
SYSTEMS FOR ENHANCING LIQUIDITY 623
CHAPTER 11. NEGOTIABILITY 625
ASSIGNMENT 39: NEGOTIABLE INSTRUMENTS 625
A. NEGOTIABILITY AND LIQUIDITY 625
B. A TYPICAL TRANSACTION 627
FIGURE 39.1*SAMPLE NEGOTIABLE DRAFT 627
C. THE NEGOTIABILITY REQUIREMENTS 628
FIGURE 39.2*THE PLAYERS IN A NEGOTIABLE DRAFT TRANSACTION 629
1. THE PROMISE OR ORDER REQUIREMENT 629
2. THE UNCONDITIONAL REQUIREMENT 631
DBA ENTERPRISES, INC. V. FINDLAY 631
3. THE MONEY REQUIREMENT 634
4. THE FIXED-AMOUNT REQUIREMENT 634
NAGEL V. CRONEBAUGH 635
5. THE PAYABLE-TO-BEARER-OR-ORDER REQUIREMENT 637
6. THE DEMAND OR DEFINITE-TIME REQUIREMENT 638
7. THE NO-EXTRANEOUS-UNDERTAKINGS REQUIREMENT 639
PROBLEM SET 39 640
ASSIGNMENT 40: TRANSFER AND ENFORCEMENT OF NEGOTIABLE
INSTRUMENTS 643
A. TRANSFERRING A NEGOTIABLE INSTRUMENT 643
1. NEGOTIATION AND STATUS AS A HOLDER 643
2. SPECIAL AND BLANK INDORSEMENTS 644
3. RESTRICTIVE AND ANOMALOUS INDORSEMENTS 646
B. ENFORCEMENT AND COLLECTION OF INSTRUMENTS 646
1. THE RIGHT TO ENFORCE AN INSTRUMENT 646
2. PRESENTMENT AND DISHONOR 647
3. DEFENSES TO ENFORCEMENT 648
TURMAN V. WARD'S HOME IMPROVEMENT, INC. 648
C. LIABILITY ON AN INSTRUMENT 649
FIGURE 40.1 * LIABILITY ON AN INSTRUMENT 651
D. THE EFFECT OF THE INSTRUMENT ON THE UNDERLYING OBLIGATION 651
MCMAHON FOOD CORP. V. BURGER DAIRY CO. 653
PROBLEM SET 40 656
FIGURE 40.2*REVERSE OF SAMPLE TKO CHECK 656
CONTENTS XXV
ASSIGNMENT 41: HOLDERS IN DUE COURSE 659
A. HOLDER-IN-DUE-COURSE STATUS 659
1. THE REQUIREMENTS FOR HOLDER-IN-DUE-COURSE STATUS 659
2. RIGHTS OF HOLDERS IN DUE COURSE 661
STATE STREET BANK & TRUST CO. V. STRAWSER 663
3. PAYMENT AND DISCHARGE 665
4. TRANSFEREES WITHOUT HOLDER-IN-DUE-COURSE STATUS 667
B. THE FADING ROLE OF NEGOTIABILITY 668
1. THE DECLINING USE OF NEGOTIABLE INSTRUMENTS 668
2. THE DECREASING RELEVANCE OF NEGOTIABILITY TO
NEGOTIABLE INSTRUMENTS 669
PROBLEM SET 41 671
CHAPTER 12. SECURITIZATION 675
ASSIGNMENT 42: SECURITIZATION 675
A. SECURITIZATION AND LIQUIDITY 675
B. THE RISE OF SECURITIZATION 676
C. INVESTMENT SECURITIES AND ARTICLE 8 677
1. THE SUBJECT MATTER: WHAT IS A SECURITY? 678
2. THE OBLIGATION OF THE ISSUER 679
3. THE TWO HOLDING SYSTEMS 681
(A) THE DIRECT HOLDING SYSTEM 681
(I) MAKING THE TRANSFER EFFECTIVE AS BETWEEN
SELLER AND PURCHASER 681
(II) MAKING THE TRANSFER EFFECTIVE AGAINST THE ISSUER 682
(III) THE EFFECT OF A TRANSFER ON THIRD PARTIES 682
(B) THE INDIRECT HOLDING SYSTEM 683
(I) THE BASIC FRAMEWORK 683
(II) RIGHTS AGAINST THE INTERMEDIARY 685
(III) RIGHTS AGAINST THIRD PARTIES 687
PROBLEM SET 42 689
BOOK THREE
SECURED CREDIT 693
PART ONE
THE CREDITOR-DEBTOR RELATIONSHIP 695
CHAPTER 13. CREDITORS' REMEDIES UNDER STATE LAW 697
ASSIGNMENT 43: REMEDIES OF UNSECURED CREDITORS UNDER
STATE LAW 697
A. WHO IS AN UNSECURED CREDITOR? 697
B. HOW DO UNSECURED CREDITORS COMPEL PAYMENT? 698
VITALE V. HOTEL CALIFORNIA, INC. 699
C. LIMITATIONS ON COMPELLING PAYMENT 707
WISCONSIN STATUTES ANNOTATED 708
XXVI
D. IS THE LAW SERIOUS ABOUT COLLECTING UNSECURED DEBTS? 711
PROBLEM SET 43 711
ASSIGNMENT 44: SECURITY AND FORECLOSURE 714
A. THE NATURE OF SECURITY 714
THE INVENTION OF SECURITY: A PSEUDO HISTORY 716
BASILE V. ERHAL HOLDING CORPORATION 719
B. FORECLOSURE PROCEDURE 721
1. JUDICIAL FORECLOSURE 721
WISCONSIN STATUTES ANNOTATED 724
2. POWER OF SALE FORECLOSURE 725
3. U.C.C. FORECLOSURE BY SALE 726
PROBLEM SET 44 726
ASSIGNMENT 45: REPOSSESSION OF COLLATERAL 729
A. THE IMPORTANCE OF POSSESSION PENDING FORECLOSURE 729
B. THE RIGHT TO POSSESSION PENDING FORECLOSURE - REAL PROPERTY 730
1. THE DEBTOR'S RIGHT TO POSSESSION DURING FORECLOSURE 730
2. APPOINTMENT OF A RECEIVER 730
CALIFORNIA CODE OF CIVIL PROCEDURE 732
ILLINOIS MORTGAGE FORECLOSURE LAW 732
3. ASSIGNMENTS OF RENTS 732
C. THE RIGHT TO POSSESSION PENDING FORECLOSURE - PERSONAL
PROPERTY 733
DEL'S BIG SAVER FOODS, INC. V. CARPENTER COOK, INC. 734
D. THE ARTICLE 9 RIGHT TO SELF-HELP REPOSSESSION 737
E. THE LIMITS OF SELF-HELP: BREACH OF THE PEACE 738
SALISBURY LIVESTOCK CO. V. COLORADO CENTRAL CREDIT UNION 738
F. SELF-HELP AGAINST ACCOUNTS AS COLLATERAL 743
PROBLEM SET 45 745
ASSIGNMENT 46: JUDICIAL SALE AND DEFICIENCY 749
A. STRICT FORECLOSURE 749
B. FORECLOSURE SALE PROCEDURE 750
C. PROBLEMS WITH FORECLOSURE SALE PROCEDURE 751
ARMSTRONG V. CSURILLA 752
1. ADVERTISING 756
WISCONSIN STATUTES ANNOTATED 756
FIGURE 46.1*NOTICE OF A FORECLOSURE SALE 757
2. INSPECTION 757
HOMEBUYER FINDS REMAINS OF OWNER 758
3. TITLE AND CONDITION 758
MARINO V. UNITED BANK OF ILLINOIS, N.A. 758
4. HOSTILE SITUATION 761
5. THE STATUTORY RIGHT TO REDEEM 762
D. ANTIDEFICIENCY STATUTES 762
CALIFORNIA CODE OF CIVIL PROCEDURE 763
E. CREDIT BIDDING AT JUDICIAL SALES 764
F. JUDICIAL SALE PROCEDURE: A FUNCTIONAL ANALYSIS 766
PROBLEM SET 46 766
CONTENTS XXVII
ASSIGNMENT 47: ARTICLE 9 SALE AND DEFICIENCY
A. STRICT FORECLOSURE UNDER ARTICLE 9
B. SALE PROCEDURE UNDER ARTICLE 9
C. PROBLEMS WITH ARTICLE 9 SALE PROCEDURE
1. FAILURE TO SELL THE COLLATERAL
2. THE REQUIREMENT OF NOTICE OF SALE
IN RE DOWNING
3. THE REQUIREMENT OF A COMMERCIALLY REASONABLE SALE
CHAVERS V. FRAZIER
D. ARTICLE 9 SALE PROCEDURE: A FUNCTIONAL ANALYSIS
PROBLEM SET 47
CHAPTER 14. CREDITORS' REMEDIES IN BANKRUPTCY
ASSIGNMENT 48: BANKRUPTCY AND THE AUTOMATIC STAY
A. THE FEDERAL BANKRUPTCY SYSTEM
B. FILING A BANKRUPTCY CASE
C. STOPPING CREDITORS' COLLECTION ACTIVITIES
D. LIFTING THE STAY FOR SECURED CREDITORS
IN RE CRADDOCK-TERRY SHOE CORPORATION
E. STRATEGIC USES OF STAY LITIGATION
PROBLEM SET 48
ASSIGNMENT 49: THE TREATMENT OF SECURED CREDITORS IN
BANKRUPTCY
A. THE VOCABULARY OF BANKRUPTCY CLAIMS
B. THE CLAIMS PROCESS
C. CALCULATING THE AMOUNT OF AN UNSECURED CLAIM
D. PAYMENTS ON UNSECURED CLAIMS
E. CALCULATING THE AMOUNT OF A SECURED CLAIM
F. SELLING THE COLLATERAL
G. WHO PAYS THE EXPENSES OF SALE BY THE TRUSTEE?
H. CHAPTERS 11 AND 13 REORGANIZATIONS
I. VALUING FUTURE PAYMENTS
TILL V. SCS CREDIT CORPORATION
PROBLEM SET 49
769
769
770
771
771
772
772
774
775
580
781
785
785
785
786
789
791
795
801
802
804
804
806
808
809
811
812
813
815
816
817
820
CHAPTER 15. CREATION OF SECURITY INTERESTS 823
ASSIGNMENT 50: FORMALITIES FOR ATTACHMENT 823
A. A PROTOTYPICAL SECURED TRANSACTION 823
FISHERMAN'S PIER: A PROTOTYPICAL SECURED TRANSACTION 824
B. FORMALITIES FOR ARTICLE 9 SECURITY INTERESTS 826
1. POSSESSION OR AUTHENTICATED SECURITY AGREEMENT 826
IN RE THOMPSON (WIEBERG V. THOMPSON) 828
IN RE ACE LUMBER SUPPLY, INC. 830
2. VALUE HAS BEEN GIVEN 836
3. THE DEBTOR HAS RIGHTS IN THE COLLATERAL 837
XXVIII
C. FORMALITIES FOR REAL ESTATE MORTGAGES
OHIO REVISED CODE ANN.
PROBLEM SET 50
ASSIGNMENT 51: WHAT COLLATERAL AND OBLIGATIONS ARE COVERED?
A. INTERPRETING SECURITY AGREEMENTS
1. DEBTOR AGAINST CREDITOR
2. CREDITOR AGAINST THIRD PARTY
3. INTERPRETING DESCRIPTIONS OF COLLATERAL
B. SUFFICIENCY OF DESCRIPTION: ARTICLE 9 SECURITY AGREEMENTS
IN RE SHIREL
C. DESCRIBING AFTER-ACQUIRED PROPERTY
STOUMBOS V. KILIMNIK
D. SUFFICIENCY OF DESCRIPTION: REAL ESTATE MORTGAGES
E. WHAT OBLIGATIONS ARE SECURED?
PROBLEM SET 51
ASSIGNMENT 52: PROCEEDS, PRODUCTS, AND OTHER VALUE-TRACING
CONCEPTS
A. PROCEEDS
1. DEFINITION
2. TERMINATION OF SECURITY INTEREST IN THE COLLATERAL AFTER
AUTHORIZED DISPOSITION
3. CONTINUATION OF SECURITY INTEREST IN THE COLLATERAL
AFTER UNAUTHORIZED DISPOSITION
ILLINOIS REVISED STATUTES
NEW YORK PENAL LAW
4. LIMITATIONS ON THE SECURED CREDITOR'S ABILITY TO
TRACE COLLATERAL
IN RE ORIENTAL RUG WAREHOUSE CLUB, INC.
B. OTHER VALUE-TRACING CONCEPTS
C. NON-VALUE TRACING CONCEPTS
PROBLEM SET 52
ASSIGNMENT 53: TRACING COLLATERAL VALUE DURING BANKRUPTCY
A. DISTINGUISHING PROCEEDS FROM AFTER-ACQUIRED PROPERTY
IN RE DELBRIDGE
IN RE HOTEL SIERRA VISTA LIMITED PARTNERSHIP
B. "CASH COLLATERAL" IN BANKRUPTCY
PROBLEM SET 53
CONTENTS
839
839
839
843
843
843
844
844
845
845
848
849
851
852
853
856
857
857
859
860
861
862
864
865
868
869
869
872
872
873
878
880
882
CHAPTER 16. DEFAULT: THE GATEWAY TO REMEDIES 885
ASSIGNMENT 54: DEFAULT, ACCELERATION, AND CURE UNDER STATE LAW 885
A. DEFAULT 885
STANDARD DEFAULT PROVISIONS 885
B. WHEN IS PAYMENT DUE? 886
CONTENTS XXIX
1. INSTALLMENT LOANS 887
2. SINGLE-PAYMENT LOANS 887
3. LINES OF CREDIT 888
C. ACCELERATION AND CURE 889
1. ACCELERATION 889
2. LIMITS ON THE ENFORCEABILITY OF ACCELERATION CLAUSES 890
F.R. HALE CONTRACTING CO. V. UNITED NEW MEXICO BANK
AT ALBUQUERQUE 890
3. THE DEBTOR'S RIGHT TO CURE 895
OLD REPUBLIC INSURANCE CO. V. LEE 895
REINSTATEMENT 896
D. THE ENFORCEABILITY OF PAYMENT TERMS 896
KHAM & NATE'S SHOES NO. 2, INC. V. FIRST BANK OF WHITING 898
E. PROCEDURES AFTER DEFAULT 901
FIGURE 54.1 * THE SPIDER AD 402
PROBLEM SET 54 903
ASSIGNMENT 55: DEFAULT, ACCELERATION, AND CURE UNDER
BANKRUPTCY LAW 906
IN RE MOFFETT (TIDEWATER FINANCE CO. V. MOFFETT) 906
A. STAGE 1: PROTECTION OF THE DEFAULTING DEBTOR PENDING
REORGANIZATION 909
B. STAGE 2: REINSTATEMENT AND CURE 910
1. MODIFICATION DISTINGUISHED FROM REINSTATEMENT
AND CURE 910
2. REINSTATEMENT AND CURE UNDER CHAPTER 11 911
3. REINSTATEMENT AND CURE UNDER CHAPTER 13 912
4. WHEN IS IT TOO LATE TO FILE BANKRUPTCY TO REINSTATE
AND CURE? 914
IN RE DESENO 914
C. BINDING LENDERS IN THE ABSENCE OF A FIXED SCHEDULE FOR
REPAYMENT 918
PROBLEM SET 55 918
CHAPTER 17. THE PROTOTYPICAL SECURED TRANSACTION 921
ASSIGNMENT 56: THE PROTOTYPICAL SECURED TRANSACTION 921
A. THE PARTIES 921
B. DEUTSCHE APPROVES BONNIE'S LOAN 922
C. DEUTSCHE AND BONNIE'S DOCUMENT THE LOAN 923
1. SECURITY AGREEMENT AND STATEMENT OF TRANSACTION 923
FIGURE 56.1 * STATEMENT OF TRANSACTION 931
2. THE FINANCING STATEMENT 932
FIGURE 56.2*U.C.C.-L FINANCING STATEMENT 932
3. THE PERSONAL GUARANTEE 933
D. BONNIE'S BUYS SOME BOATS 933
1. THE FLOORPLAN AGREEMENT 933
2. THE BUY 936
E. BONNIE'S SELLS A BOAT 937
XXX CONTENTS
F. MONITORING THE EXISTENCE OF THE COLLATERAL 937
PROBLEM SET 56 938
PART TWO
THE CREDITOR-THIRD PARTY RELATIONSHIP 943
CHAPTER 18. PERFECTION 945
ASSIGNMENT 57: THE PERSONAL PROPERTY FILING SYSTEMS 945
A. COMPETITION FOR THE SECURED CREDITOR'S COLLATERAL 945
B. WHAT IS PRIORITY? 946
PEERLESS PACKING CO. V. MALONE & HYDE, INC. 947
C. HOW DO CREDITORS GET PRIORITY? 949
D. THE THEORY OF THE FILING SYSTEM 951
E. THE MULTIPLICITY OF FILING SYSTEMS 952
NATIONAL PEREGRINE, INC. V. CAPITOL FEDERAL SAVINGS AND LOAN
ASSOCIATION OF DENVER (IN RE PEREGRINE ENTERTAINMENT, LIMITED) 953
IN RE: PASTEURIZED EGGS CORPORATION (PASTEURIZED EGGS
CORPORATION V. BON DENTE JOINT VENTURE) 959
F. METHODS AND COSTS OF SEARCHING 960
PROBLEM SET 57 961
ASSIGNMENT 58: ARTICLE 9 FINANCING STATEMENTS: THE DEBTOR'S
NAME 964
A. THE COMPONENTS OF A FILING SYSTEM 964
1. FINANCING STATEMENTS 965
2. THE INDEX 966
3. SEARCH SYSTEMS 967
B. CORRECT NAMES FOR USE ON FINANCING STATEMENTS 968
1. INDIVIDUAL NAMES 969
IN RE KINDERKNECHT (CLARK V. DEERE AND CO.) 970
2. CORPORATE NAMES 972
3. PARTNERSHIP NAMES 973
4. TRADE NAMES 973
5. THE ENTITY PROBLEM 974
C. ERRORS IN THE DEBTOR'S NAMES ON FINANCING STATEMENTS 974
IN RE SPEARING TOOL AND MANUFACTURING CO., INC.
(UNITED STATES V. CRESTMARK BANK) 976
PROBLEM SET 58 979
ASSIGNMENT 59: ARTICLE 9 FINANCING STATEMENTS: OTHER INFORMATION 981
A. INTRODUCTION 981
B. FILING OFFICE ERRORS IN ACCEPTANCE OR REJECTION 982
1. WRONGLY ACCEPTED FILINGS 982
2. WRONGLY REJECTED FILINGS 983
C. FILER ERRORS IN ACCEPTED FILINGS 983
1. INFORMATION NECESSARY ONLY TO QUALIFY FOR FILING 983
CONTENTS XXXI
2. REQUIRED INFORMATION 984
IN RE PICKLE LOGGING, INC. (DEERE CREDIT, INC. V. PICKLE
LOGGING, INC.) 988
D. AUTHORIZATION TO FILE A FINANCING STATEMENT 989
E. U.C.C. INSURANCE 991
PROBLEM SET 59 991
ASSIGNMENT 60: EXCEPTIONS TO THE ARTICLE 9 FILING REQUIREMENT 994
A. COLLATERAL IN THE POSSESSION OF THE SECURED PARTY 994
1. THE POSSESSION-GIVES-NOTICE THEORY 994
2. WHAT IS POSSESSION? 996
3. POSSESSION AS A MEANS OF PERFECTION 997
B. COLLATERAL IN THE CONTROL OF THE SECURED PARTY 999
C. PURCHASE-MONEY SECURITY INTERESTS IN CONSUMER GOODS 1000
1. PURCHASE MONEY SECURITY INTEREST (PMSI) 1000
2. CONSUMER GOODS 1001
GALLATIN NATIONAL BANK V. LOCKOVICH (IN RE LOCKOVICH) 1002
D. SECURITY INTERESTS NOT GOVERNED BY ARTICLE 9 OR
ANOTHER FILING STATUTE 1005
BLUXOME STREET ASSOCIATES V. FIREMAN'S FUND INSURANCE CO. 1006
E. WHAT BECAME OF THE NOTICE REQUIREMENT? 1008
PROBLEM SET 60 1008
CHAPTER 19. MAINTAINING PERFECTION 1011
ASSIGNMENT 61: MAINTAINING PERFECTION THROUGH LAPSE
AND BANKRUPTCY 1011
A. REMOVING FILINGS FROM THE PUBLIC RECORD 1011
1. SATISFACTION 1011
ARIZONA REVISED STATUTES ANNOTATED 1012
FLORIDA STATES ANNOTATED 1013
2. RELEASE 1013
3. ARTICLE 9 TERMINATION AND RELEASE 1014
B. "SELF-CLEARING" AND CONTINUATION IN THE ARTICLE 9 FILING
SYSTEM 1015
WORTHEN BANK & TRUST CO., N.A. V. HILYARD DRILLING CO.
(IN RE HILYARD DRILLING CO.) 1017
C. THE EFFECT OF BANKRUPTCY ON LAPSE AND CONTINUATION 1021
IN RE SCHWINN CYCLING AND FITNESS, INC. (EXPEDITORS
INTERNATIONAL OF WASHINGTON, INC. V. THE LIQUIDATING TRUST) 1022
PROBLEM SET 61 1024
ASSIGNMENT 62: MAINTAINING PERFECTION THROUGH CHANGES OF
NAME, IDENTITY, AND USE 1027
A. CHANGES IN THE DEBTOR'S NAME 1028
B. CHANGES AFFECTING THE DESCRIPTION OF COLLATERAL 1030
C. EXCHANGE OF THE COLLATERAL 1032
1. BARTER TRANSACTIONS 1032
XXXII
NATIONAL BANK OF ALASKA V. ERICKSON (IN RE SEAWAY
EXPRESS CORPORATION)
2. COLLATERAL TO CASH PROCEEDS TO NONCASH PROCEEDS
3. COLLATERAL TO CASH PROCEEDS (NO NEW PROPERTY)
PROBLEM SET 62
ASSIGNMENT 63: MAINTAINING PERFECTION THROUGH RELOCATION OF
DEBTOR OR COLLATERAL
A. STATE-BASED FILING IN A NATIONAL ECONOMY
B. INITIAL PERFECTION
1. AT THE LOCATION OF THE DEBTOR
LYNN M. LOPUCKI, WHY THE DEBTOR'S STATE OF INCORPORATION
SHOULD BE THE PROPER PLACE FOR ARTICLE 9 FILING:
A SYSTEMS ANALYSIS
2. AT THE LOCATION OF THE COLLATERAL
C. RELOCATION OF THE DEBTOR
D. NATION-BASED FILING IN A WORLD ECONOMY
PROBLEM SET 63
ASSIGNMENT 64: MAINTAINING PERFECTION IN CERTIFICATE OF TITLE
SYSTEMS
FIGURE 64.1 * SAMPLE CERTIFICATE OF TITLE
NEW ZEALAND LAW COMMISSION, MOTOR VEHICLE TITLE SYSTEMS IN
THE USA AND CANADA
A. PERFECTION IN A CERTIFICATE OF TITLE SYSTEM
B. ACCESSIONS AND REMOVALS
C. IN WHAT STATE SHOULD A MOTOR VEHICLE BE TITLED?
D. MOTOR VEHICLE REGISTRATION
FIGURE 64.2*SAMPLE VEHICLE REGISTRATION
E. MAINTAINING PERFECTION ON INTERSTATE MOVEMENT OF
COLLATERAL
1. HOW IT IS SUPPOSED TO WORK
2. SOME THINGS THAT CAN GO WRONG
3. MOVEMENT OF GOODS BETWEEN NON-CERTIFICATE
AND CERTIFICATE JURISDICTIONS
PROBLEM SET 64
CHAPTER 20. PRIORITY
ASSIGNMENT 65: THE CONCEPT OF PRIORITY: STATE LAW
A. PRIORITY IN FORECLOSURE
B. RECONCILING INCONSISTENT PRIORITIES
BANK LEUMI TRUST CO. OF NEW YORK V. LIGGETT
C. THE RIGHT TO POSSESSION BETWEEN LIEN HOLDERS
THE GROCERS SUPPLY CO. V. INTERCITY INVESTMENT PROPERTIES, INC.
FRIERSON V. UNITED FARM AGENCY, INC.
PROBLEM SET 65
CONTENTS
1034
1036
1037
1037
1039
1039
1040
1040
1041
1043
1043
1045
1048
1050
1051
1052
1055
1056
1058
1059
1060
1060
1060
1061
1062
1063
1067
1067
1067
1070
1071
1073
1074
1075
1077
CONTENTS XXXIII
CHAPTER 21. COMPETITIONS FOR COLLATERAL 1081
ASSIGNMENT 66: LIEN CREDITORS AGAINST SECURED CREDITORS:
THE BASICS
1081
A. HOW CREDITORS BECOME "LIEN CREDITORS" 1081
JUDGMENT LIENS ON REAL AND PERSONAL PROPERTY 1082
B. PRIORITY AMONG LIEN CREDITORS 1083
PREFERENCE BETWEEN WRITS OF EXECUTION 1084
C. PRIORITY BETWEEN LIEN CREDITORS AND SECURED CREDITORS 1084
PEOPLE V. GREEN 1085
D. PRIORITY BETWEEN LIEN CREDITORS AND MORTGAGE CREDITORS 1088
E. PURCHASE-MONEY PRIORITY 1088
PROBLEM SET 66 1089
ASSIGNMENT 67: LIEN CREDITORS AGAINST SECURED CREDITORS:
FUTURE ADVANCES 1092
A. PRIORITY OF FUTURE ADVANCES: PERSONAL PROPERTY 1092
B. PRIORITY OF NONADVANCES: PERSONAL PROPERTY 1094
UNI IMPORTS, INC. V. EXCHANGE NATIONAL BANK OF CHICAGO 1094
C. PRIORITY OF FUTURE ADVANCES AND NONADVANCES:
REAL PROPERTY 1098
SHUTZE V. CREDITHRIFT OF AMERICA, INC. 1098
PROBLEM SET 67 1103
ASSIGNMENT 68: SECURED CREDITORS AGAINST SECURED CREDITORS:
THE BASICS 1106
A. THE BASIC RULE: FIRST TO FILE OR PERFECT 1106
B. PRIORITY OF FUTURE ADVANCES 1108
C. PRIORITY IN AFTER-ACQUIRED PROPERTY 1110
D. PRIORITY OF PURCHASE-MONEY SECURITY INTERESTS 1111
1. PURCHASE-MONEY SECURITY INTERESTS GENERALLY 1111
2. PURCHASE-MONEY SECURITY INTERESTS IN INVENTORY 1114
E. PURCHASE-MONEY PRIORITY IN PROCEEDS 1115
F. PRIORITY IN COMMINGLED COLLATERAL 1116
PROBLEM SET 68 1117
ASSIGNMENT 69: BUYERS AGAINST SECURED CREDITORS 1122
A. INTRODUCTION 1122
B. BUYERS OF REAL PROPERTY 1123
C. BUYERS OF PERSONAL PROPERTY 1124
1. THE AUTHORIZED DISPOSITION EXCEPTION: U.C.C.
§9-315(A)(L) 1124
RFC CAPITAL CORPORATION V. EARTHLINK, INC. 1125
2. THE BUYER-IN-THE-ORDINARY-COURSE EXCEPTION: U.C.C.
§9-320(A) 1128
DANIEL V. BANK OF HAYWARD 1131
XXXIV CONTENTS
3. THE BUYER-NOT-IN-THE-ORDINARY-COURSE EXCEPTION:
U.C.C. §§9-323(D) AND (E) AND 9-317(B) 1136
4. THE CONSUMER-TO-CONSUMER SALE EXCEPTION:
U.C.C. §9-320(B) 1137
PROBLEM SET 69 1138
TABLE OF CASES 1143
TABLE OF STATUTES AND REGULATIONS 1153
INDEX 1171 |
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| callnumber-raw | KF914 |
| callnumber-search | KF914 |
| callnumber-sort | KF 3914 |
| callnumber-subject | KF - United States |
| ctrlnum | (OCoLC)62896476 (DE-599)BVBBV022434843 |
| dewey-full | 346.7307/2 |
| dewey-hundreds | 300 - Social sciences |
| dewey-ones | 346 - Private law |
| dewey-raw | 346.7307/2 |
| dewey-search | 346.7307/2 |
| dewey-sort | 3346.7307 12 |
| dewey-tens | 340 - Law |
| discipline | Rechtswissenschaft |
| discipline_str_mv | Rechtswissenschaft |
| edition | 3. ed. |
| format | Book |
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| geographic | USA |
| geographic_facet | USA |
| id | DE-604.BV022434843 |
| illustrated | Not Illustrated |
| index_date | 2024-07-02T17:30:33Z |
| indexdate | 2024-07-09T20:57:31Z |
| institution | BVB |
| isbn | 0735556474 9780735556478 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-015642979 |
| oclc_num | 62896476 |
| open_access_boolean | |
| owner | DE-19 DE-BY-UBM |
| owner_facet | DE-19 DE-BY-UBM |
| physical | XLI, 1184 S. |
| publishDate | 2006 |
| publishDateSearch | 2006 |
| publishDateSort | 2006 |
| publisher | Aspen |
| record_format | marc |
| spelling | Commercial transactions a systems approach Lynn M. LoPucki ... 3. ed. New York, NY Aspen 2006 XLI, 1184 S. txt rdacontent n rdamedia nc rdacarrier Crédit - Droit - États-Unis Débiteur et créancier - États-Unis Effets de commerce - États-Unis Vente - Droit - États-Unis Recht Credit Law and legislation United States Debtor and creditor United States Negotiable instruments United States Sales United States USA LoPucki, Lynn M. 1944- Sonstige (DE-588)132994003 oth SWB Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015642979&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Commercial transactions a systems approach Crédit - Droit - États-Unis Débiteur et créancier - États-Unis Effets de commerce - États-Unis Vente - Droit - États-Unis Recht Credit Law and legislation United States Debtor and creditor United States Negotiable instruments United States Sales United States |
| title | Commercial transactions a systems approach |
| title_auth | Commercial transactions a systems approach |
| title_exact_search | Commercial transactions a systems approach |
| title_exact_search_txtP | Commercial transactions a systems approach |
| title_full | Commercial transactions a systems approach Lynn M. LoPucki ... |
| title_fullStr | Commercial transactions a systems approach Lynn M. LoPucki ... |
| title_full_unstemmed | Commercial transactions a systems approach Lynn M. LoPucki ... |
| title_short | Commercial transactions |
| title_sort | commercial transactions a systems approach |
| title_sub | a systems approach |
| topic | Crédit - Droit - États-Unis Débiteur et créancier - États-Unis Effets de commerce - États-Unis Vente - Droit - États-Unis Recht Credit Law and legislation United States Debtor and creditor United States Negotiable instruments United States Sales United States |
| topic_facet | Crédit - Droit - États-Unis Débiteur et créancier - États-Unis Effets de commerce - États-Unis Vente - Droit - États-Unis Recht Credit Law and legislation United States Debtor and creditor United States Negotiable instruments United States Sales United States USA |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=015642979&sequence=000001&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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