Secured Credit

by LoPucki, Lynn M.

• ISBN13: 9780735556454
• ISBN10: 0735556458
• Edition: 5th
• Format: Hardcover
• Copyright: 2005-11-30
• Publisher: Wolters Kluwer

Summary

This problem-based casebook uses assignment-sized modules to explore the relationships and transactions between creditors and debtors. Increasingly popular with each successive edition -- and continually refined in light of classroom experience and user feedback -- Secured Credit: A Systems Approach enters its Fifth Edition as a proven teaching and learning tool. Instructors know they can depend on this casebook for: extraordinary authorship from two of the most highly respected experts in the field skillful use of the systems approach, examining how the law is applied in actual transactions and teaching the Code in context teachable problems prefaced by straightforward textual explanations and cases great flexibility for structuring a course regardless of emphasis or approach distinctive organization by assignment units that takes the effort out of preparing a syllabus cutting-edge coverage of emerging issues careful exploration of the intersection between secured transactions and bankruptcy extremely thorough Teacher's Manual with answers to all problems, As well as suggestions on omitting sections due to time constraints well-written text and vivid problems, helping the students Understand The basics while they also get the chance to strategize over more advanced issues a complete set of PowerPoint presentations for classroom use, available at http://lopucki.law.ucla.edu/securedcredit This careful revision responds to developments in the law: full coverage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 reflects recent amendments To The Model Rules of Professional Conduct dual section numbers to facilitate use with either version of UCC Article 1 new cases, including -- Till v. SCS Credit, The Supreme Court's holding that the interest rate on secured creditor payouts in bankruptcy should be the risk-free rate plus one to three percent -- Kinderknecht, The Eighth Circuit Bankruptcy Appellate Panel holding that filings must be in the 'legal name' of the debtor, not a nickname -- RFC Capital v. Earthlink, The Ohio Appellate Courts holding dealing with release of lien in an internet service provider's sale of its customer base -- Spearing Tool, The Sixth Circuit's holding that the IRS doesn't have to comply with the debtor name requirements of Article 9 when they file in the Article 9 filing system an author website to support classroom instruction using this title is available at http://www.aspenlawschool.com/lopucki_secured5

Table of Contents

Acknowledgments	xxv
Introduction	xxix
Part One The Creditor-Debtor Relationship	1	(268)
Chapter 1. Creditors' Remedies Under State Law	3	(88)
Assignment 1: Remedies of Unsecured Creditors Under State Law	3	(17)
A. Who Is an Unsecured Creditor?	3	(1)
B. How Do Unsecured Creditors Compel Payment?	4	(9)
Vitale v. Hotel California, Inc.	5	(8)
C. Limitations on Compelling Payment	13	(4)
Wisconsin Statutes Annotated	14	(3)
D. Is the Law Serious About Collecting Unsecured Debts?	17	(1)
Problem Set 1	17	(3)
Assignment 2: Security and Foreclosure	20	(15)
A. The Nature of Security	20	(7)
The Invention of Security: A Pseudo History	22	(3)
Basile v. Erhal Holding Corp.	25	(2)
B. Foreclosure Procedure	27	(5)
1. Judicial Foreclosure	27	(1)
Wisconsin Statutes Annotated	30	(1)
2. Power of Sale Foreclosure	31	(1)
3. U.C.C. Foreclosure by Sale	32	(1)
Problem Set 2	32	(3)
Assignment 3: Repossession of Collateral	35	(20)
A. The Importance of Possession Pending Foreclosure	35	(1)
B. The Right to Possession Pending Foreclosure — Real Property	36	(3)
1. The Debtor's Right to Possession During Foreclosure	36	(1)
2. Appointment of a Receiver	36	(1)
California Code of Civil Procedure	38	(1)
Illinois Mortgage Foreclosure Law	38	(1)
3. Assignments of Rents	38	(1)
C. The Right to Possession Pending Foreclosure — Personal Property	39
Del's Big Saver Foods, Inc. v. Carpenter Cook, Inc.	40
D. The Article	9	(35)
Right to Self-Help Repossession	43	(1)
E. The Limits of Self-Help: Breach of the Peace	44	(5)
Salisbury Livestock Co. v. Colorado Central Credit Union	44	(5)
F. Self-Help Against Accounts as Collateral	49	(2)
Problem Set 3	51	(4)
Assignment 4: Judicial Sale and Deficiency	55	(20)
A. Strict Foreclosure	55	(1)
B. Foreclosure Sale Procedure	56	(1)
C. Problems with Foreclosure Sale Procedure	57	(11)
Armstrong v. Csurilla	58	(1)
1. Advertising	62	(1)
Wisconsin Statutes Annotated	62	(1)
Figure 1. Notice of a Foreclosure Sale	63	(1)
2. Inspection	63	(1)
Homebuyer Finds Remains of Owner	64	(1)
3. Title and Condition	64	(1)
Marino v. United Bank of Illinois, N.A.	64	(3)
4. Hostile Situation	67	(1)
5. The Statutory Right to Redeem	68	(1)
D. Antideficiency Statutes	68	(2)
California Code of Civil Procedure	69	(1)
E. Credit Bidding at Judicial Sales	70	(2)
F. Judicial Sale Procedure: A Functional Analysis	72	(1)
Problem Set 4	72	(3)
Assignment 5: Article 9 Sale and Deficiency	75	(16)
A. Strict Foreclosure Under Article 9	75	(1)
B. Sale Procedure Under Article 9	76	(1)
C. Problems with Article 9 Sale Procedure	77	(3)
1. Failure to Sell the Collateral	77	(1)
2. The Requirement of Notice of Sale	78	(1)
In re Downing	78	(2)
3. The Requirement of a Commercially Reasonable Sale	80
Chavers v. Frazier	81
D. Article	9	(78)
Sale Procedure: A Functional Analysis	86	(1)
Problem Set 5	87	(4)
Chapter 2. Creditors' Remedies in Bankruptcy	91	(38)
Assignment 6: Bankruptcy and the Automatic Stay	91	(19)
A. The Federal Bankruptcy System	91	(1)
B. Filing a Bankruptcy Case	92	(3)
C. Stopping Creditors' Collection Activities	95	(2)
D. Lifting the Stay for Secured Creditors	97	(10)
In re Craddock-Terry Shoe Corp.	101	(6)
E. Strategic Uses of Stay Litigation	107	(1)
Problem Set 6	108	(2)
Assignment 7: The Treatment of Secured Creditors in Bankruptcy	110	(19)
A. The Vocabulary of Bankruptcy Claims	110	(2)
B. The Claims Process	112	(2)
C. Calculating the Amount of an Unsecured Claim	114	(1)
D. Payments on Unsecured Claims	115	(2)
E. Calculating the Amount of a Secured Claim	117	(1)
F. Selling the Collateral	118	(1)
G. Who Pays the Expenses of Sale by the Trustee?	119	(2)
H. Chapters 11 and 13 Reorganizations	121	(1)
I. Valuing Future Payments	122	(4)
Till v. SCS Credit Corporation	123	(3)
Problem Set 7	126	(3)
Chapter 3. Creation of Security Interests	129	(82)
Assignment 8: Formalities for Attachment	129	(20)
A. A Prototypical Secured Transaction	129	(3)
Fisherman's Pier: A Prototypical Secured Transaction	130	(2)
B. Formalities for Article 9 Security Interests	132	(13)
1. Possession or Authenticated Security Agreement	132	(1)
In re Thompson (Wieberg v. Thompson)	134	(1)
In re Ace Lumber Supply, Inc.	136	(6)
2. Value Has Been Given	142	(1)
3. The Debtor Has Rights in the Collateral	143	(2)
C. Formalities for Real Estate Mortgages	145	(1)
Ohio Revised Code Ann.	145	(1)
Problem Set 8	145	(4)
Assignment 9: What Collateral and Obligations Are Covered?	149	(13)
A. Interpreting Security Agreements	149	(2)
1. Debtor Against Creditor	149	(1)
2. Creditor Against Third Party	150	(1)
3. Interpreting Descriptions of Collateral	150	(1)
B. Sufficiency of Description: Article 9 Security Agreements	151	(3)
In re Shirel	151	(3)
C. Describing After-Acquired Property	154	(3)
Stoumbos v. Kilimnik	155	(2)
D. Sufficiency of Description: Real Estate Mortgages	157	(1)
E. What Obligations Are Secured?	158	(1)
Problem Set 9	159	(3)
Assignment 10: Proceeds, Products, and Other Value-Tracing Concepts	162	(16)
A. Proceeds	163	(11)
1. Definition	163	(2)
2. Termination of Security Interest in the Collateral After Authorized Disposition	165	(1)
3. Continuation of Security Interest in the Collateral After Unauthorized Disposition	166	(1)
Illinois Revised Statutes	167	(1)
New York Penal Law	168	(2)
4. Limitations on the Secured Creditor's Ability to Trace Collateral	170	(1)
In re Oriental Rug Warehouse Club, Inc.	171	(3)
B. Other Value-Tracing Concepts	174	(1)
C. Non-Value-Tracing Concepts	175	(1)
Problem Set 10	175	(3)
Assignment 11: Tracing Collateral Value During Bankruptcy	178	(12)
A. Distinguishing Proceeds from After-Acquired Property	178	(8)
In re Delbridge	179	(5)
In re Hotel Sierra Vista Limited Partnership	184	(2)
B. "Cash Collateral" in Bankruptcy	186	(2)
Problem Set 11	188	(2)
Assignment 12: The Legal Limits on What May Be Collateral	190	(21)
A. Property That Cannot Be Collateral	191	(8)
1. Property of a Personal Nature	191	(1)
Federal Trade Commission, Trade Regulation Rules	193	(1)
2. Future Income of Individuals	194	(2)
3. Pension Rights	196	(1)
In re Green	196	(1)
Assignment or Alienation of Plan Benefits	199	(1)
B. Future Property as Collateral	199	(1)
C. Valuable Nonproperty as Collateral	200	(4)
In re SRJ Enterprises, Inc.	201	(3)
D. Defeating the Limits on What May Be Collateral	204	(1)
E. Restrictions on the Grant of Security Interests Made Ineffective	205	(3)
In re Chris-Don, Inc. (State of New Jersey, Division of Taxation v. United Trust Bank)	205	(3)
Problem Set 12	208	(3)
Chapter 4. Default: The Gateway to Remedies	211	(36)
Assignment 13: Default, Acceleration, and Cure Under State Law	211	(21)
A. Default	211	(1)
Standard Default Provisions	211	(1)
B. When Is Payment Due?	212	(3)
1. Installment Loans	213	(1)
2. Single Payment Loans	213	(1)
3. Lines of Credit	214	(1)
C. Acceleration and Cure	215	(7)
1. Acceleration	215	(1)
2. Limits on the Enforceability of Acceleration Clauses	216	(1)
J.R. Hale Contracting Co. v. United New Mexico Bank at Albuquerque	216	(5)
3. The Debtor's Right to Cure	221	(1)
Old Republic insurance Co. v. Lee	221	(1)
Reinstatement	222	(1)
D. The Enforceability of Payment Terms	222	(5)
Kham & Nate's Shoes No. 2, Inc. v. First Bank of Whiting	224	(3)
E. Procedures After Default	227	(2)
Figure 2. The Spider Ad	228	(1)
Problem Set 13	229	(3)
Assignment 14: Default, Acceleration, and Cure Under Bankruptcy Law	232	(15)
In re Moffett (Tidewater Finance Co. v. Moffett)	232	(3)
A. Stage 1: Protection of the Defaulting Debtor Pending Reorganization	235	(1)
B. Stage 2: Reinstatement and Cure	236	(8)
1. Modification Distinguished from Reinstatement and Cure	236	(1)
2. Reinstatement and Cure Under Chapter 11	237	(1)
3. Reinstatement and Cure Under Chapter 13	238	(2)
4. When Is It Too Late to File Bankruptcy to Reinstate and Cure?	240	(1)
In re DeSeno	240	(4)
C. Binding Lenders in the Absence of a Fixed Schedule for Repayment	244	(1)
Problem Set 14	244	(3)
Chapter 5. The Prototypical Secured Transaction	247	(24)
Assignment 15: The Prototypical Secured Transaction	247	(25)
A. The Parties	247	(1)
B. Deutsche Approves Bonnie's Loan	248	(1)
C. Deutsche and Bonnie's Document the Loan	249	(10)
1. Security Agreement and Statement of Transaction	249	(1)
Figure 3. Statement of Transaction	257	(1)
2. The Financing Statement	258	(1)
Figure 4. U.C.C.-1 Financing Statement	258	(1)
3. The Personal Guarantee	259	(1)
D. Bonnie's Buys Some Boats	259	(4)
1. The Floorplan Agreement	259	(3)
2. The Buy	262	(1)
E. Bonnie's Sells a Boat	263	(1)
F. Monitoring the Existence of the Collateral	263	(1)
Problem Set 15	264	(31)
Miller Indicted on Bank Fraud	265	(4)
Part Two The Creditor-Third Party Relationship	269	(2)
Chapter 6. Perfection	271	(1)
Assignment 16: The Personal Property Filing Systems	271	(19)
A. Competition for the Secured Creditor's Collateral	271	(1)
B. What Is Priority?	272	(3)
Peerless Packing Co. v. Malone & Hyde, Inc.	273	(2)
C. How Do Creditors Get Priority?	275	(2)
D. The Theory of the Filing System	277	(1)
E. The Multiplicity of Filing Systems	278	(8)
National Peregrine, Inc. v. Capitol Federal Savings and Loan Association of Denver (In re Peregrine Entertainment, Ltd.)	279	(6)
In re: Pasteurized Eggs Corporation (Pasteurized Eggs Corporation v. Bon Dente Joint Venture)	285	(1)
F. Methods and Costs of Searching	286	(1)
Problem Set 16	287	(3)
Assignment 17: Article 9 Financing Statements: The Debtor's Name	290	(17)
A. The Components of a Filing System	290	(4)
1. Financing Statements	291	(1)
2. The Index	292	(1)
3. Search Systems	293	(1)
B. Correct Names for Use on Financing Statements	294	(6)
1. Individual Names	295	(3)
In re Kinderknecht (Clark v. Deere and Co.)	296	(2)
2. Corporate Names	298	(1)
3. Partnership Names	299	(1)
4. Trade Names	299	(1)
5. The Entity Problem	300	(1)
C. Errors in the Debtors' Names on Financing Statements	300	(5)
In re Spearing Tool and Mfg. Co., Inc. (United States v. Crestmark Bank)	302	(3)
Problem Set 17	305	(2)
Assignment 18: Article 9 Financing Statements: Other Information	307	(13)
A. Introduction	307	(1)
B. Filing Office Errors in Acceptance or Rejection	308	(1)
1. Wrongly Accepted Filings	308	(1)
2. Wrongly Rejected Filings	309	(1)
C. Filer Errors in Accepted Filings	309	(6)
1. Information Necessary Only to Qualify for Filing	309	(1)
2. Required Information	310	(10)
In re Pickle Logging, Inc. (Deere Credit, Inc. v. Pickle Logging, Inc.)	314	(1)
D. Authorization to File a Financing Statement	315	(2)
E. U.C.C. Insurance	317	(1)
Problem Set 18	317	(3)
Assignment 19: Exceptions to the Article 9 Filing Requirement	320	(17)
A. Collateral in the Possession of the Secured Party	320	(5)
1. The Possession-Gives-Notice Theory	320	(2)
2. What Is Possession?	322	(1)
3. Possession as a Means of Perfection	323	(2)
B. Collateral in the Control of the Secured Party	325	(1)
C. Purchase-Money Security Interests in Consumer Goods	326	(5)
1. Purchase-Money Security Interest (PMSI)	326	(1)
2. Consumer Goods	327	(4)
Gallatin National Bank v. Lockovich (In re Lockovich)	328	(3)
D. Security Interests Not Governed by Article 9 or Another
Filing Statute	331	(1)
Bluxome Street Associates v. Fireman's Fund Insurance Co.	332	(2)
E. What Became of the Notice Requirement?	334	(1)
Problem Set 19	334	(3)
Assignment 20: The Land and Fixtures Recording Systems	337	(16)
A. Real Property Recording Systems	337	(2)
B. What Is Recorded?	339	(1)
C. Fixtures	340	(9)
1. What Is a "Fixture"?	340	(1)
2. How Does a Secured Creditor Perfect in Fixtures?	341	(7)
In re Cliff's Ridge Skiing Corp.	341	(6)
In re Renaud (Rice v. Simmons First Bank of Searcy)	347	(1)
3. Perfecting in the Fixtures of a Transmitting Utility	348	(1)
D. Personal Property Interests in Real Property	349	(1)
Problem Set 20	350	(3)
Assignment 21: Characterizing Collateral for the Purpose of Perfection	353	(14)
A. Determining the Proper Place of Filing	353	(2)
1. Personal Property Distinguished from Real Property	354	(1)
2. Inventory Distinguished from Equipment	354	(1)
B. Determining the Proper Method of Perfection	355	(5)
1. Instruments Distinguished from General Intangibles	355	(2)
Omega Environmental Inc. v. Valley Bank, N.A.	355	(2)
2. True Leases Distinguished from Leases Intended as Security	357	(1)
3. Realty Paper	358	(1)
4. Chattel Paper and Instruments Distinguished from Accounts	358	(2)
C. Multiple Items of Collateral	360	(4)
In re Leasing Consultants, Inc.	360	(4)
Problem Set 21	364	(3)
Chapter 7. Maintaining Perfection	367	(1)
Assignment 22: Maintaining Perfection Through Lapse and Bankruptcy	367	(16)
A. Removing Filings from the Public Record	367	(4)
1. Satisfaction	367	(2)
Arizona Revised Statutes Annotated	368	(1)
Florida Statutes Annotated	369	(1)
2. Release	369	(1)
3. Article 9 Termination and Release	370	(1)
B. "Self-Clearing" and Continuation in the Article 9 Filing System	371	(6)
Worthen Bank & Trust Co., N.A. v. Hilyard Drilling Co. (In re Hilyard Drilling Co.)	373	(4)
C. The Effect of Bankruptcy on Lapse and Continuation	377	(3)
In re Schwinn Cycling and Fitness, Inc. (Expeditors Intl. of Washington, Inc. v. The Liquidating Trust)	378	(2)
Problem Set 22	380	(3)
Assignment 23: Maintaining Perfection Through Changes of Name, Identity, and Use	383	(12)
A. Changes in the Debtor's Name	384	(2)
B. Changes Affecting the Description of Collateral	386	(2)
C. Exchange of the Collateral	388	(5)
1. Barter Transactions	388	(4)
National Bank of Alaska v. Erickson (In re Seaway Express Corp.)	390	(2)
2. Collateral to Cash Proceeds to Noncash Proceeds	392	(1)
3. Collateral to Cash Proceeds (No New Property)	393	(1)
Problem Set 23	393	(2)
Assignment 24: Maintaining Perfection Through Relocation of Debtor or Collateral	395	(11)
A. State-based Filing in a National Economy	395	(1)
B. Initial Perfection	396	(3)
1. At the Location of the Debtor	396	(3)
Lynn M. LoPucki, Why the Debtor's State of Incorporation Should Be the Proper Place for Article 9 Filing: A Systems Analysis	397	(2)
2. At the Location of the Collateral	399	(1)
C. Relocation of the Debtor	399	(2)
D. Nation-based Filing in a World Economy	401	(3)
Problem Set 24	404	(2)
Assignment 25: Maintaining Perfection in Certificate of Title Systems	406	(17)
Figure 5. Sample Certificate of Title	407	(1)
New Zealand Law Commission, Motor Vehicle Title Systems in the USA and Canada	408	(3)
A. Perfection in a Certificate of Title System	411	(1)
B. Accessions and Removals	412	(2)
C. In What State Should a Motor Vehicle Be Titled?	414	(1)
D. Motor Vehicle Registration	415	(1)
Figure 6. Sample Vehicle Registration	416	(1)
E. Maintaining Perfection on Interstate Movement of Collateral	416	(3)
1. How It Is Supposed to Work	416	(1)
2. Some Things That Can Go Wrong	417	(1)
3. Movement of Goods Between Non-Certificate and Certificate Jurisdictions	418	(1)
Problem Set 25	419	(4)
Chapter 8. Priority	423	(1)
Assignment 26: The Concept of Priority: State Law	423	(13)
A. Priority in Foreclosure	423	(3)
B. Reconciling Inconsistent Priorities	426	(3)
Bank Leumi Trust Co. of New York v. Liggett	427	(2)
C. The Right to Possession Between Lien Holders	429	(4)
The Grocers Supply Co. v. Intercity Investment Properties, Inc.	430	(1)
Frierson v. United Farm Agency, Inc.	431	(2)
Problem Set 26	433	(3)
Assignment 27: The Concept of Priority: Bankruptcy Law	436	(17)
A. Bankruptcy Sale Procedure	437	(5)
In re Oneida Lake Development, Inc.	438	(4)
B. The Power to Grant Senior Liens	442	(7)
In re 495 Central Park Avenue Corp.	444	(5)
C. Protection of Subordinate Creditors	449	(1)
Problem Set 27	450	(3)
Chapter 9. Competitions for Collateral	453	(1)
Assignment 28: Lien Creditors Against Secured Creditors: The Basics	453	(11)
A. How Creditors Become "Lien Creditors"	453	(2)
Judgment Liens on Real and Personal Property	454	(1)
B. Priority Among Lien Creditors	455	(1)
Preference Between Writs of Execution	456	(1)
C. Priority Between Lien Creditors and Secured Creditors	456	(4)
People v. Green	457	(3)
D. Priority Between Lien Creditors and Mortgage Creditors	460	(1)
E. Purchase-Money Priority	460	(1)
Problem Set 28	461	(3)
Assignment 29: Lien Creditors Against Secured Creditors: Future Advances	464	(14)
A. Priority of Future Advances: Personal Property	464	(2)
B. Priority of Nonadvances: Personal Property	466	(4)
Uni Imports, Inc. v. Exchange National Bank of Chicago	466	(4)
C. Priority of Future Advances and Nonadvances: Real Property	470	(5)
Shutze v. Credithrift of America, Inc.	470	(5)
Problem Set 29	475	(3)
Assignment 30: Trustees in Bankruptcy Against Secured Creditors: The Strong Arm Clause	478	(16)
A. The Purpose of Bankruptcy Code §544(a)	478	(1)
B. The Text of Bankruptcy Code §544(a)	479	(7)
1. The Judicial Lien Creditor of §544(a)(1)	480	(1)
Lien on Motor Vehicle for Damages	480	(1)
2. The Creditor with an Execution Returned Unsatisfied	481	(1)
3. The Bona Fide Purchaser of Real Property	481	(5)
Midlantic National Bank v. Bridge	482	(4)
C. The Implementation of Bankruptcy Code §544(a)	486	(4)
1. Exercise of Bankruptcy Code §544(a) Discretion by Chapter 7 Trustees	487	(2)
The Mortgage Document E-mail	487	(2)
2. Exercise of §544(a) Discretion by Chapter 11 Debtors in Possession	489	(1)
D. Recognition of Grace Periods	490	(1)
Problem Set 30	491	(3)
Assignment 31: Trustees in Bankruptcy Against Secured Creditors: Preferences	494	(10)
A. Priority Among Unsecured Creditors	494	(2)
1. Priority Under State Law: A Review	494	(1)
2. Priority Under Bankruptcy Law: A Review	495	(1)
3. Reconciling the State and Bankruptcy Policies	495	(1)
B. What Security Interests Can Be Avoided as Preferential?	496	(4)
1. Generally	496	(1)
2. When Does the "Transfer" of a Security Interest Occur?	497	(2)
3. The §547(c)(5) Exception for Accounts Receivable and Inventory	499	(1)
4. Relation-Back Rules	500	(1)
C. Strategic Implications of Preference Avoidance	500	(1)
Problem Set 31	501	(3)
Assignment 32: Secured Creditors Against Secured Creditors: The Basics	504	(16)
A. The Basic Rule: First to File or Perfect	504	(2)
B. Priority of Future Advances	506	(2)
C. Priority in After-Acquired Property	508	(1)
D. Priority of Purchase-Money Security Interests	509	(4)
1. Purchase-Money Security Interests Generally	509	(3)
2. Purchase-Money Security Interests in Inventory	512	(1)
E. Purchase-Money Priority in Proceeds	513	(1)
F. Priority in Commingled Collateral	514	(1)
Problem Set 32	515	(5)
Assignment 33: Secured Creditors Against Secured Creditors: Land and Fixtures	520	(20)
A. Mortgage Against Mortgage	520	(5)
1. Recording Statutes: The Rules of Priority	520	(3)
Race Statute	521	(1)
Notice Statute	522	(1)
Notice-Race Statute	522	(1)
2. Who Is a Good Faith Purchaser for Value?	523	(1)
3. Purchase-Money Mortgages	524	(1)
Purchase-Money Mortgages: California	524	(1)
Purchase-Money Mortgages: Pennsylvania	524	(1)
B. Judgment Liens Against Mortgages	525	(1)
C. Mechanics' Liens Against Construction Mortgages	525	(8)
1. A Prototypical Construction Financing Transaction	526	(2)
2. Who Is Entitled to a Mechanic's Lien?	528	(1)
New York Lien Law	528	(1)
3. Priority of Mechanics' Liens	529	(4)
In re Skyline Properties, Inc.	530	(1)
Ketchum, Konkel, Barrett, Nickel & Austin v. Heritage Mountain Development Co.	531	(2)
D. The Priority of Article 9 Fixture Filings	533	(2)
1. Priority in Fixtures Incorporated During Construction	534	(1)
2. Priority in Fixtures Incorporated Without Construction	534	(1)
E. Priority in Real Property Based on Personal Property Filing	535	(1)
Problem Set 33	536	(4)
Assignment 34: Competitions Involving Cross-Collateralization and Marshaling Assets	540	(18)
A. Cross-Collateralization Provisions in Security Agreements	540	(2)
B. The Secured Creditor's Right to Choose Its Remedy	542	(3)
1. Debtor-Enforceable Limits on the Secured Creditor's Right to Choose Its Remedy	542	(1)
2. Release of Collateral	543	(2)
C. Marshaling Assets	545	(7)
1. Marshaling as a Limit on the Secured Creditor's Choice	546	(4)
In re Robert E. Derecktor of Rhode Island, Inc.	546	(4)
2. Equitable Assignment as an Alternative to Marshaling	550	(1)
3. Can Unsecured Creditors Marshal?	550	(1)
4. Marshaling Against Property Owned by Third Parties	551	(1)
D. The Effect of Cross-Collateralization on Purchase-Money Status	552	(2)
Problem Set 34	554	(4)
Assignment 35: Sellers Against Secured Creditors	558	(18)
A. Limits of the After-Acquired Property Clause	558	(4)
1. Rules Governing Title to Personal Property	559	(1)
2. Rules Governing Security Interests in Personal Property	560	(1)
3. The Filing System as an Exception to Nemo Dat	561	(1)
B. Suppliers Against Inventory-Secured Lenders	562	(1)
C. Sellers' Weapons Against the After-Acquired Property Clause	563	(10)
1. Purchase-Money Security Interests	563	(1)
2. Retention of Title	563	(1)
3. Consignment	564	(1)
4. The Seller's Right of Reclamation	564	(5)
In re M. Paolella & Sons, Inc.	565	(4)
5. Express or Implied Agreement with the Secured Creditor	569	(1)
6. Equitable Subordination	569	(3)
In re M. Paolella & Sons, Inc.	569	(3)
7. Unjust Enrichment	572	(1)
Problem Set 35	573	(3)
Assignment 36: Buyers Against Secured Creditors	576	(20)
A. Introduction	576	(1)
B. Buyers of Real Property	577	(1)
C. Buyers of Personal Property	578	(14)
1. The Authorized Disposition Exception: U.C.C. §9-315(a)(1)	578	(4)
RFC Capital Corporation v. EarthLink, Inc.	579	(3)
2. The Buyer-in-the-Ordinary-Course Exception: U.C.C. §9-320(a)	582	(8)
Daniel v. Bank of Hayward	585	(5)
3. The Buyer-Not-in-the-Ordinary-Course Exception: U.C.C. §§9-323(d) and (e) and 9-317(b)	590	(1)
4. The Consumer-to-Consumer-Sale Exception: U.C.C. §9-320(b)	591	(1)
Problem Set 36	592	(4)
Assignment 37: Statutory Lien Creditors Against Secured Creditors	596	(20)
A. The Variety of Statutory Liens in Personal Property	596	(9)
1. Artisans' Liens	597	(1)
Personal Property Lien for Services, Manufacture, or Repair	597	(1)
2. Garage Keepers' Liens	597	(1)
Garage Keeper's Lien	598	(1)
3. Attorneys' Charging and Retaining Liens	598	(1)
Attorneys' Lien	599	(1)
4. Hospital Liens	599	(1)
Hospital Lien	599	(1)
5. Landlord's Lien	600	(1)
Landlord's Lien	600	(1)
6. Dry Cleaners' and Launderers' Liens	600	(1)
Dry Cleaners' and Launderers' Lien	600	(1)
7. Agricultural Liens	601	(5)
Royal Foods Co. v. L.R. Holdings, Inc.	603	(2)
B. Statutory Liens in Bankruptcy	605	(1)
C. The Priority of Statutory Liens	606	(2)
Myzer v. Emark Corporation	608	(1)
D. Statutory Liens as a Challenge to the First-in-Time Rule	608	(2)
E. Secured Creditor Responses to Statutory Lien Priority	610	(2)
Cleanup and Removal of Hazardous Substances	611	(1)
Problem Set 37	612	(4)
Mechanic's Liens: Wisconsin	613	(3)
Assignment 38: Competitions Involving Federal Tax Liens: The Basics	616	(17)
A. The Creation and Perfection of Federal Tax Liens	617	(8)
1. Creation	617	(1)
2. Perfection	618	(2)
New York Lien Law	618	(2)
3. Remedies for Enforcement	620	(1)
4. Maintaining Perfection of a Tax Lien	620	(5)
United States v. LMS Holding Co.	621	(2)
In re Eschenbach	623	(2)
B. Competitions Involving Federal Tax Liens	625	(6)
1. Security Interest	626	(1)
2. Purchaser	626	(2)
Mayer-Dupree v. Internal Revenue Service	627	(1)
3. Judgment Lien Creditor	628	(7)
United States v. McDermott	628	(3)
Problem Set 38	631	(2)
Assignment 39: Competitions Involving Federal Tax Liens: Advanced Problems	633	(15)
A. The Strange Metaphysics of the Internal Revenue Code	633	(2)
B. Protection of Those Who Lend After the Tax Lien Is Filed	635	(9)
1. The General Provision Regarding Future Advances, I.R. C. §6323(d)	635	(1)
2. Commercial Transactions Financing Agreements	636	(1)
3. Real Property Construction or Improvement Financing	637	(1)
4. Obligatory Disbursement Agreements	637	(1)
5. Statutory Liens	638	(1)
6. Purchase-Money Security Interests	638	(6)
First Interstate Bank of Utah, N.A. v. Internal Revenue Service	639	(5)
C. Nonadvances	644	(1)
Problem Set 39	645	(3)
Assignment 40: Why Secured Credit?	648	(19)
Thomas H. Jackson and Anthony Kronman, Secured Financing and Priorities Among Creditors	648	(1)
Robert E. Scott, A Relational Theory of Secured Financing	649	(2)
Steven L. Harris and Charles W. Mooney, Jr., A Property Based Theory of Security Interests: Taking Debtor's Choices Seriously	651	(2)
Lynn M. LoPucki, The Unsecured Creditor's Bargain	653	(2)
Donald B. Dowart, Memorandum: Priorities of Maritime Lien and Preferred Ship Mortgages	655	(1)
Elizabeth Warren, Article 9 Set Aside for Unsecured Creditors	656	(2)
Elizabeth Warren, Making Policy with Imperfect Information: The Article 9 Full Priority Debates	658	(2)
Lynn M. LoPucki, The Death of Liability	660	(2)
Ronald J. Mann, The Role of Secured Credit in Small-Business Lending	662	(2)
Problem Set 40	664	(3)
Table of Cases	667	(6)
Table of Statutes	673	(8)
Index	681