Automatic Perfection of a Security Interest in Goods

The video tutorial explains the concept of automatically perfected security interests, which do not require filing or possession to be established. It highlights four primary scenarios where automatic perfection occurs: temporary perfection in non-consumer goods sales, permanent perfection in consumer goods, automatic perfection in proceeds from sold goods, and automatic perfection in assigned accounts receivable. The tutorial provides a detailed understanding of these scenarios and their implications for merchants and creditors.

What is required for a security interest to be automatically perfected?

• Filing a document with the government

• Taking possession of the property

• Providing value and the debtor taking possession

• Obtaining a court order

In which scenario does temporary automatic perfection occur?

• When non-consumer goods are financed

• When the debtor does not take possession

• When a security agreement is not in writing

• When consumer goods are sold

How long is a security interest in consumer goods automatically perfected?

• Permanently

• Until the goods are sold

• Until the debtor defaults

• For 20 days

What happens to the security interest when goods subject to it are sold?

• It is terminated

• It is transferred to the proceeds

• It requires re-filing

• It becomes invalid

When assigning accounts receivable, what happens to the security interest?

• It needs to be filed again

• It is lost

• It requires a new agreement

• It is automatically perfected