As per CA’s (CC an race-notice recording statute § 1214), unrecorded conveyance is void against a who subsequent BFP4V records first (good faith purchaser w/ NO knowledge AND NO actual/constructive notice of prior unrecorded conveyance)… as such, C can beat out when is properly subsequent BFP4V TD … recorded… thus, once is properly recorded, then C can beat out a TD … AND, once C can beat out a subsequent BFP4V… subsequent then C is perfected” BFP4V, “federally If then is perfected” when, under personal property, transfer “federally state law, C can beat out a (hypothetical) subsequent judicial lien creditor (“JLC”) (§ 547(e)(1)(B)) As per C can beat out a when C’s UCC § 9317(a), subsequent JLC is perfected for state law purposes (“state-law SI perfected”)… AND, as per is upon UCC § 9308(a), SI perfected” … “state-law both (recall 3 conditions) AND (filing step” attachment “perfection of UCC-1)… is ONLY the creation of Attachment SI… BUT, is the giving of notice (of to 3rd parties perfection SI) … thus, once C is then C can beat out a perfected, … AND, once C can beat out a then subsequent JLC… subsequent JLC, C is perfected” “federally allows for filing of before loan is made (even if UCC Art. IX UCC-1 loan negotiations fall through) thus, C should file UCC-1 A.S.A.P. (needlessly delaying i.e. waiting for serial #, perfection, increases likelihood that debt is AND, consequently, antecedent… that is SI preferential) If effect” before rings, AND is transfer “takes “bell” “federally perfected” within 30 days thereof NOT even if preferential, occurs after rings perfection “bell” If effect” before rings, BUT is transfer “takes “bell” “federally perfected” after 30 days MAYBE if preferential delayed occurs after rings perfection “bell” Potentially different dates when debt incurred, when security executed, when rings, AND when perfected agreement “bell”
As per CA’s race-notice recording statute (CC § 1214), an unrecorded conveyance is void against a subsequent BFP4V who records first (good faith purchaser w/ NO knowledge AND NO actual/constructive notice of prior unrecorded conveyance)… … as such, C can beat out subsequent BFP4V when TD is properly recorded… … thus, once TD is properly recorded, then C can beat out a subsequent BFP4V… AND, once C can beat out a subsequent BFP4V, then C is “federally perfected” If personal property, then transfer is “federally perfected” when, under state law, C can beat out a (hypothetical) subsequent judicial lien creditor (“JLC”) (§ 547(e)(1)(B)) As per UCC § 9317(a), C can beat out a subsequent JLC when C’s SI is perfected for state law purposes (“state-law perfected”)… … AND, as per UCC § 9308(a), SI is “state-law perfected” upon both attachment (recall 3 conditions) AND “perfection step” (filing of UCC-1)… Attachment is ONLY the creation of SI… … BUT, perfection is the giving of notice (of SI) to 3rd parties … thus, once C is perfected, then C can beat out a subsequent JLC… AND, once C can beat out a subsequent JLC, then C is “federally perfected” UCC Art. IX allows for filing of UCC-1 before loan is made (even if loan negotiations fall through) thus, C should file UCC-1 A.S.A.P. (needlessly delaying perfection, i.e. waiting for serial #, increases likelihood that debt is antecedent… AND, consequently, that SI is preferential) If transfer “takes effect” before “bell” rings, AND is “federally perfected” within 30 days thereof NOT preferential, even if perfection occurs after “bell” rings If transfer “takes effect” before “bell” rings, BUT is “federally perfected” after 30 days MAYBE preferential if delayed perfection occurs after “bell” rings Potentially different dates when debt incurred, when security agreement executed, when “bell” rings, AND when perfected
Bankruptcy_Schechter-Fall-2009.docx