영문목차

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

Adel v. Greensprings of Vermont, Inc.=13

Cook v. Downing=19

Problem Set 1=22

Assignment 2. Scope Issues with Leases, CISG, and Real Estate=25

A. Scope of Article 2A=25

Carlson v. Giachetti=27

In re Bailey=30

B. Scope of the CISG=36

Valero Marketing & Supply Co. v. Greeni Oy & Greeni Trading Oy=37

C. Real Estate=43

Problem Set 2=43

Assignment 3. The Process of Sales Contract Formation=46

Hill v. Gateway 2000, Inc.=46

Belden, Inc. v. American Electronic Components, Inc.=54

Problem Set 3=64

Assignment 4. Formation with Leases, International Sales, and Real Estate=68

A. Formation of Contracts for Leases=68

B. Formation of Contracts for International Sales=69

Filanto v. Chilewich International Corp.=70

C. Formation of Real Estate Contracts=72

Dysart v. Cummings=73

Throckmartin v. Century 21 Top Realty=82

Problem Set 4=87

Assignment 5. Statute of Frauds with Sales of Goods=89

DF Activities Corp. v. Brown=92

General Trading Int'l v. Wal-Mart Stores=97

Problem Set 5=101

Assignment 6. Parol Evidence with Sales of Goods=104

Morgan Buildings and Spas, Inc. v. Humane Society of Southeast Texas=104

Cravotta v. Deggingers' Foundry, Inc.=114

Problem Set 6=120

Assignment 7. Requisites to Formalization in Leases, International Sales, and Real Estate Sales=122

A. Requisites to Formalization in Leases=122

B. Requisites to Formalization in International Sales=123

TeeVee Toons, Inc. v. Gerhard Schubert GmbH=123

C. Requisites to Formalization in the Real Estate System=129

Richard v. Richard=130

Problem Set 7=135

Chapter 2. Terms=139

Assignment 8. Warranties with Sales of Goods=139

A. The Effects of Warranty Law on Business Practice=139

B. The Basic UCC Quality Warranties=140

Phillips v. Cricket Lighters=141

Leal v. Holtvogt=146

C. Extended Warranties and Maintenance Agreements=150

Problem Set 8=152

Assignment 9. Lease, International, and Real Estate Warranties=155

A. Lease Warranties : The Case of Finance Leases=155

B. Warranties with International Sales=156

Schmitz-Werke GmbH Co. v. Rockland Industries, Inc.=157

C. Real Estate Warranties=161

1. Warranties Generally=161

Hershey v. Rich Rosen Construction Co.=161

2. Third-Party Home Warranties=167

Problem Set 9=168

Assignment 10. Reducing or Eliminating Warranty Liability : Basics=170

A. Warranty Reduction with Sales of Goods=170

Wilbur v. Toyota Motor Sales, U.S.A.=173

B. Warranty Reduction with Leases=176

C. Warranty Reduction with International Sales=177

Supermicro Computer, Inc. v. Digitechnic, S.A.=177

D. Disclaiming the Real Estate Implied Warranty of Habitability=179

Axline v. Kutner=179

Problem Set 10=181

Assignment 11. Commercial Impracticability=183

A. Commercial Impracticability with Sales of Goods=183

Resources Investment Corp. v. Enron Corp.=184

Alamance County Bd. of Educ. v. Bobby Murray Chevrolet=187

B. Commercial Impracticability with Leases=193

C. Commercial Impracticability with International Sales=194

Raw Materials, Inc. v. Manfred Forberich GmbH & Co.=194

D. Commercial Impracticability with Real Estate=201

Problem Set 11=201

Assignment 12. Unconscionability=204

A. Unconscionability with Sales of Goods=204

Maxwell v. Fidelity Financial Services, Inc.=205

B. Unconscionability with Leases=208

BMW Financial Services v. Smoke Rise Corp.=208

C. Unconscionability with International Sales=209

D. Unconscionability with Real Estate=210

Problem Set 12=210

Chapter 3. Performance=213

Assignment 13. Closing the Sale with Sales of Goods=213

North American Lighting, Inc. v. Hopkins Manufacturing Corp.=216

Sinco, Inc. v. Metro-North Commuter R. Co.=221

Problem Set 13=227

Assignment 14. Closing with Leases, International Sales, and Real Estate=230

A. Closing with Leases=230

In re Rafter Seven Ranches, L.P.=230

B. Closing with International Sales=242

Delchi Carrier SpA v. Rotorex Corp.=242

C. Real Estate Closings=245

Gray v. First NH Banks=246

Problem Set 14=249

Assignment 15. Risk of Loss with Sales of Goods=252

Cook Specialty Co. v. Schrlock=254

Design Data Corp. v. Maryland Casualty Co.=258

Problem Set 15=261

Assignment 16. Risk of Loss with Leases, International Sales, and Real Estate=264

A. Risk of Loss with Leases=264

Jaz, inc. v. Foley=264

B. Risk of Loss with International Sales=267

BP Oil Int'l v. Empresa Estatal Petroleos de Ecuador=268

Chicago Prime Packers, Inc. v. Northam Food Trading Co.=271

C. Risk of Loss with Real Estate=276

Voorde Poorte v. Evans=277

Problem Set 16=279

Chapter 4. Remedies=281

Assignment 17. Seller's Remedies with Sales of Goods=281

A. Why Do Legal Remedies Matter at All?=281

B. What Are a Seller's Legal Remedies?=282

1. Action for the Price=284

Sack v. Lawton=284

2. Resale Damages=287

Firwood Mfg. Co. v. General Tire=287

3. Contract-Market Difference(Without Resale)=292

4. Lost Profits=292

Problem Set 17=293

Assignment 18. Lessor's and Seller's Remedies with Leases, International Sales, and Real Estate=296

A. Lessor's Remedies=296

C.I.C. Corp. v. Ragtime, Inc.=297

B. Seller's Remedies with International Sales=302

C. Seller's Remedies with Real Estate Sales=303

Williams v. Ubaldo=303

Problem Set 18=306

Assignment 19. Buyer's Remedies with Sales of Goods=308

In re Beeche Systems=311

Problem Set 19=316

Assignment 20. Buyer's and Lessee's Remedies with Leases, International Sales, and Real Estate=321

A. Lessee's Remedies=321

B. Buyer's Remedies with International Sales=322

C. Buyer's Remedies with Real Estate=324

Jue v. Smiser=325

Problem Set 20=328

BOOK TWO Financial Systems=331

Part One Payment Systems=333

Introduction to Part One=335

Figure 1.1. Value of Cash and Noncash Retail Transactions=336

Figure 1.2. Share of Value of Checks in Noncash Transactions=338

Figure 1.3. Consumer Payments Systems over Time=341

Chapter 5. Checking Accounts as the Paradigm Payment System=345

Assignment 21. The Basic Checking Relationship and the Bank's Right to Pay Checks=345

A. The Basic Relationship=345

Figure 21.1. Payment by Check=345

B. The Bank's Right to Pay=347

1. When Is It Proper for the Bank to Pay?=347

(a) Overdrafts=348

McGuire v. Bank One, Louisiana, N.A.=348

(b) Stopping Payment=351

2. Remedies for Improper Payment=353

McIntyre v. Harris=353

Problem Set 21=355

Assignment 22. The Bank's Obligation to Pay Checks=357

A. When Are Funds Available for Payment?=357

1. Time of Evaluation=357

2. Availability of Funds=358

First National Bank v. Colonial Bank=364

B. Wrongful Dishonor : What Happens If the Bank Refuses to Pay?=366

Maryott v. First National Bank=367

Problem Set 22=373

Assignment 23. Risk of Loss in the Checking System―The Basic Framework=376

A. Nonpayment=376

Figure 23.1. Indorser Liability=378

B. Forged Signatures=378

1. Forged Drawers' Signatures and the Rule of Price v. Neal=379

Figure 23.2. Presentment and Transfer Warranties=380

Decibel Credit Union v. Pueblo Bank & Trust Company=381

2. Forged Indorsements=386

(a) What is the Payor Bank Dishonors the Check Because of the Forged Indorsement?=386

(b) What If the Payor Bank Pays the Check Despite the Forged Indorsement?=387

(c) Conversion=388

C. Alteration=389

Problem Set 23=389

Assignment 24. Risk of Loss in the Checking System―Special Rules=392

A. Negligence=392

Bank of Texas v. VR Electric, Inc.=392

B. Theft by Employees=401

Cable Cast Magazine v. Premier Bank=401

Halifax Corp. v. Wachovia Bank=404

C. Impostors=407

State Security Check Cashing, Inc. v. American General Financial Services(DE)=407

Problem Set 24=418

Assignment 25. Collection of Checks I : Forward Collection and Returned Checks=420

A. The Payor Bank's Obligation to the Payee=420

Outdoor Technologies, Inc. v. Allfirst Financial, Inc.=420

B. The Process of Collection=426

1. Obtaining Payment Directly=426

Figure 25.1. Direct Presentment=427

2. Obtaining Payment Through Intermediaries=427

(a) Payee/Customer to Depositary Bank=428

(b) Depositary Bank to Payor Bank=428

Figure 25.2. Clearinghouse Collection=432

Figure 25.3. Direct-Send Collection=434

Figure 25.4. Federal Reserve Collection=435

NBT Bank v. First National Community Bank=438

United States Bank N.A. v. HMA, L.L.C.=449

Problem Set 25=455

Assignment 26. Collection of Checks II : Bank Statements and Check 21=459

A. Bank Statements=459

Figure 26.1. MICR Line=460

Stowell v. Cloquet Co-op Credit Union=462

B. Depositary-Bank Truncation and the Check 21 Act=469

Wachovia Bank, N.A. v. Foster Bancshares, Inc.=470

Figure 26.2. Check Processing Under Check 21=473

Figure 26.3. Substitute Check=474

Triffin v. Third Federal Savings Bank=476

Problem Set 26=478

Chapter 6. Electronic Payments=483

Assignment 27. The Credit-Card System=483

A. The Issuer―Cardholder Relationship=483

B. Using the Credit-Card Account=486

C. Collection by the Payee=487

1. The Mechanics of Collection=487

2. Finality of Payment=489

Figure 27.1. Payment by Credit Card=490

Figure 27.2. Dividing the Credit-Card Dollar=491

Hyland v. First USA Bank=492

CitiBank(South Dakota), N.A. v. Mincks=494

Problem Set 27=504

Assignment 28. Error and Fraud in Credit-Card Transactions=506

A. Erroneous Charges=506

Belmont v. Associates National Bank(Delaware)=507

B. Unauthorized Charges=516

DBI Architects, P.C. v. American Express Travel-Related Services=517

New Century Financial Services v. Dennegar=523

Problem Set 28=527

Assignment 29. Debit Cards=530

A. Payment with a Debit Card=530

1. Establishing the Debit-Card Relationship=531

2. Transferring Funds with a Debit Card=532

3. Collection by the Payee=532

(a) PIN-Based(Online) Debit Cards=533

(b) PIN-Less(Off-line) Debit Cards=533

B. Error and Fraud in Debit-Card Transactions=534

1. Erroneous Transactions=535

2. Fraudulent Transactions=535

Hospicomm, Inc. v. Fleet Bank, N.A.=540

Heritage Bank v. Lovett=543

Problem Set 29=546

Assignment 30. The Wire-Transfer System=549

A. Introduction=549

B. How Does It Work?=550

1. Initiating the Wire Transfer : From the Originator to the Originator's Bank=550

Figure 30.1. Payment by Wire Transfer=551

Trustmark Ins. Co. v. Bank One=552

Banco de la Provincia v. BayBank Boston N.A.=556

2. Executing the Transfer : From the Originator's Bank to the Beneficiary's Bank=560

(a) Bilateral Systems(Including SWIFT)=560

(b) CHIPS=561

Figure 30.2. Multilateral Netting on CHIPS=562

(c) Fedwire=563

Figure 30.3. Sample Fedwire Message=564

3. Completing the Funds Transfer : From the Beneficiary's Bank to the Beneficiary=566

C. Discharge of the Originator's Underlying Obligation=567

D. Finality of Payment=568

Aleo International, Ltd. v. CitiBank, N.A.=568

Problem Set 30=570

Assignment 31. Error in Wire-Transfer Transactions=573

A. Recovering from Parties in the System=573

1. Errors by the Originator=574

Phil & Kathy's Inc. v. Safra Nat'l Bank=574

2. Errors in the System=578

(a) Sending Excessive Funds=578

(b) Sending Inadequate Funds=579

(c) Bank-Statement Rule=580

3. Circuity of Recovery=581

Grain Traders, Inc. v. CitiBank, N.A.=581

B. Recovering from the Mistaken Recipient=585

Problem Set 31=587

Chapter 7. Developing Payment Systems=591

Legal Implications of Network Economic Effects / Mark Lemley ; David McGowan=591

Making Sense of Payments Policy in the Information Age / Ronald J. Mann=596

Assignment 32. Internet Payments=600

A. Credit Cards on the Internet=600

1. Processing the Transactions=600

2. Problems=601

(a) Fraud=601

(b) Privacy=604

(c) Micropayments=605

B. Debit Cards on the Internet=606

C. ACH Transfers(WEB Entries)=607

Figure 32.1. ACH "Checks"=608

D. Foreign and Cross-Border Payments=609

E. A Note on Mobile Payments=610

Problem Set 32=611

Part Two Credit Enhancement and Letters of Credit=613

Introduction to Part Two=615

Chapter 8. Credit Enhancement=617

Assignment 33. Credit Enhancement by Guaranty=617

A. The Role of Guaranties=617

B. Rights of the Creditor Against the Guarantor=620

In re PTI Holding Corp.(Homestead Holdings, Inc. v. Broome & Wellington)=621

Problem Set 33=630

Assignment 34. Protections for Guarantors=641

A. Rights of the Guarantor Against the Principal=641

1. Performance=641

2. Reimbursement=641

Figure 34.1. Rights of the Guarantor=642

3. Subrogation=642

Chemical Bank v. Meltzer=643

B. Rights of the Guarantor Against the Creditor=648

1. Suretyship Defenses=648

2. Waiver of Suretyship Defenses=650

Data Sales Co. v. Diamond Z Manufacturing=650

C. Bankruptcy of the Guarantor=656

Trimec, Inc. v. Zale Corporation=656

Problem Set 34=658

Chapter 9. Letters of Credit=661

Assignment 35. Letters of Credit―The Basics=661

A. The Underlying Transaction=662

Figure 35.1. Irrevocable Commercial Letter of Credit=663

B. Advising and Confirming Banks=665

C. The Terms of the Credit=665

Figure 35.2. Issuing the Letter of Credit=666

D. Drawing on the Credit=668

Samuel Rappaport Family Partnership v. Meridian Bank=669

Carter Petroleum Products, Inc. v. Brotherhood Bank & Trust Co.=673

LaBarge Pipe & Steel Co. v. First Bank=677

E. Reimbursement=688

Figure 35.3. Payment with a Letter of Credit=688

Banco Nacional De Mexico v. Societe Generale=689

Problem Set 35=692

Assignment 36. Letters of Credit―Advanced Topics=695

A. Error and Fraud in Letter-of-Credit Transactions=695

1. Wrongful Honor=695

2. Wrongful Dishonor=697

3. Fraud=699

(a) Forged Drafts=699

(b) Fraudulent Submissions by the Beneficiary=699

B. Assigning Letters of Credit=701

C. Choice-of-Law Rules=703

Problem Set 36=703

Assignment 37. Third-Party Credit Enhancement―Standby Letters of Credit=706

A. The Standby Letter-of-Credit Transaction=706

Figure 37.1. Standby Letters of Credit=708

Nobel Insurance Co. v. First Nat'l Bank=709

Figure 37.2. Form Standby Letter of Credit=712

Wood v. State Bank=713

B. Problems in Standby Letter-of-Credit Transactions=715

1. Bankruptcy of the Applicant=715

In re Ocana=716

2. The Issuer's Right of Subrogation=718

CCF, Inc. v. First National Bank(In re Slamans)=718

Problem Set 37=720

Part Three Liquidity Systems=723

Chapter 10. Negotiability=725

Assignment 38. Negotiable Instruments=725

A. Negotiability and Liquidity=725

B. A Typical Transaction=727

Figure 38.1. Sample Negotiable Draft=728

C. The Negotiability Requirements=728

1. The Promise or Order Requirement=729

Figure 38.2. The Players in a Negotiable Draft Transaction=729

Figure 38.3. The Negotiability Requirements=730

2. The Unconditional Requirement=731

DBA Enterprises, Inc. v. Findlay=731

3. The Money Requirement=734

4. The Fixed-Amount Requirement=734

Nagel v. Cronebaugh=735

5. The Payable-to-Bearer-or-Order Requirement=737

Sirius LC v. Erickson=738

6. The Demand or Definite-Time Requirement=740

7. The No-Extraneous-Undertakings Requirement=740

Problem Set 38=741

Assignment 39. Transfer and Enforcement of Negotiable Instruments=744

A. Transferring a Negotiable Instrument=744

1. Negotiation and Status as a Holder=744

2. Special and Blank Indorsements=745

3. Restrictive and Anomalous Indorsements=747

B. Enforcement and Collection of Instruments=747

1. The Right to Enforce an Instrument=747

In re Kang Jin Hwang=748

2. Presentment and Dishonor=753

3. Defenses to Enforcement=753

Turman v. Ward's Home Improvement, Inc.=754

C. Liability on an Instrument=755

Figure 39.1. Liability on an Instrument=756

D. The Effect of the Instrument on the Underlying Obligation=757

McMahon Food Corp. v. Burger Dairy Co.=758

Problem Set 39=761

Assignment 40. Holders in Due Course=765

A. Holder-in-Due-Course Status=765

1. The Requirements for Holder-in-Due-Course Status=765

2. Rights of Holders in Due Course=767

State Street Bank & Trust Co. v. Strawser=768

3. Payment and Discharge=771

4. Transferees Without Holder-in-Due-Course Status=773

B. The Fading Role of Negotiability=774

1. The Declining Use of Negotiable Instruments=774

2. The Decreasing Relevance of Negotiability to Negotiable Instruments=775

Problem Set 40=777

Chapter 11. Securities=781

Assignment 41. Securities=781

A. Securitization and Liquidity=781

B. The Rise of Securitization=782

C. Investment Securities and Article 8=783

Davis v. Stem, Agee & Leach, Inc.=784

1. The Subject Matter : What Is a Security?=789

2. The Obligation of the Issuer=791

3. The Two Holding Systems=792

(a) The Direct Holding System=793

Meadow Homes Development Corp. v. Bowens=794

(b) The Indirect Holding System=798

Problem Set 41=804

BOOK THREE Secured Credit=807

Part One The Creditor-Debtor Relationship=809

Chapter 12. Creditors' Remedies Under State Law=811

Assignment 42. Remedies of Unsecured Creditors Under State Law=811

A. Who Is an Unsecured Creditor?=811

B. How Do Unsecured Creditors Compel Payment?=812

Vitale v. Hotel California, Inc.=814

Ellerbee v. County of Los Angeles=820

C. Limitations on Compelling Payment=822

Wisconsin Statutes Annotated=823

D. Fraudulent Transfers=825

E. Is the Law Serious about Collecting Unsecured Debts?=826

Problem Set 42=827

Assignment 43. Security and Foreclosure=830

A. The Necessity of Foreclosure=832

The Invention of Security : A Pseudo History=832

B. Transactions Intended as Security=835

Basile v. Erhal Holding Corporation=835

1. Conditional Sales=837

2. Leases Intended as Security Interests=837

3. Sales of Accounts=838

4. Asset Securitization=840

C. Foreclosure Procedure=840

1. Judicial Foreclosure=841

The Court House : How One Family Fought Foreclosure / Amir Efrati=841

2. Real Property Power of Sale Foreclosure=843

3. U.C.C. Foreclosure by Sale=844

Problem Set 43=844

Assignment 44. Repossession of Collateral=848

A. The Importance of Possession Pending Foreclosure=848

B. The Right to Possession Pending Foreclosure―Personal Property=848

Wisconsin Statutes=850

12 Oklahoma Statutes=850

C. The Article 9 Right to Self-Help Repossession=850

D. The Limits of Self-Help : Breach of the Peace=852

Salisbury Livestock Co. v. Colorado Central Credit Union=852

Chapa v. Traciers & Associates=856

E. Self-Help Against Accounts as Collateral=858

F. The Right to Possession Pending Foreclosure―Real Property=859

1. The Debtor's Right to Possession During Foreclosure=859

2. Appointment of a Receiver=859

California Code of Civil Procedure=860

Illinois Mortgage Foreclosure Law=861

3. Assignments of Rents=861

Problem Set 44=861

Assignment 45. Judicial Sale and Deficiency=866

A. Strict Foreclosure=866

B. Foreclosure Sale Procedure=867

C. Problems with Foreclosure Sale Procedure=868

Armstrong v. Csurilla=869

1. Advertising=873

Wisconsin Statutes Annotated=873

2. Inspection=874

Homebuyer Finds Remains of Owner=875

3. Title and Condition=875

Marino v. United Bank of Illinois, N.A.=876

4. Hostile Situation=879

5. The Statutory Right to Redeem=879

D. Antideficiency Statutes=880

California Code of Civil Procedure=880

E. Credit Bidding at Judicial Sales=881

F. Judicial Sale Procedure : A Functional Analysis=882

Problem Set 45=883

Assignment 46. Article 9 Sale and Deficiency=886

A. Acceptance of Collateral=886

B. Sale Procedure Under Article 9=887

C. Problems with Article 9 Sale Procedure=889

1. Failure to Sell the Collateral=889

2. The Requirement of Notice of Sale=889

In re Downing=890

3. The Requirement of a Commercially Reasonable Sale=892

General Electric Capital Corp. v. Nichols=892

D. Article 9 Sale Procedure : A Functional Analysis=895

Problem Set 46=897

Chapter 13. Creditors' Remedies in Bankruptcy=901

Assignment 47. Bankruptcy and the Automatic Stay=901

A. The Federal Bankruptcy System=901

B. Filing a Bankruptcy Case=902

C. The Automatic Stay=903

D. Lifting the Stay for Secured Creditors=906

In re Craddock-Terry Shoe Corporation=910

E. Strategic Uses of Stay Litigation=915

Problem Set 47=917

Assignment 48. The Treatment of Secured Creditors in Bankruptcy=919

A. The Vocabulary of Bankruptcy Claims=919

B. The Claims Process=921

C. Calculating Claim Amounts=923

1. Unsecured Claims=923

2. Secured Claims=924

D. Payments on Unsecured Claims=926

E. Bankruptcy Sales=927

1. The Sale Process=927

2. Who Pays the Sale Expenses?=928

F. Secured Creditor Entitlements=929

1. General Rules=929

2. Valuing Future Payments=931

Till v. SCS Credit Corporation=932

Problem Set 48=935

Chapter 14. Creation of Security Interests=939

Assignment 49. Formalities for Attachment=939

A. A Prototypical Secured Transaction=939

Fisherman's Pier : A Prototypical Secured Transaction=939

B. Formalities for Article 9 Security Interests=942

1. Possession or Authenticated Security Agreement=942

In re Schwalb=944

In re Giaimo(Drown v. Perfect)=946

2. Value Has Been Given=951

3. The Debtor Has Rights in the Collateral=952

C. Formalities for Real Estate Mortgages=953

Ohio Revised Code Ann.=953

Problem Set 49=954

Assignment 50. Which Collateral and Obligations Are Covered?=958

A. Interpreting Security Agreements=958

1. Debtor Against Creditor=958

2. Creditor Against Third Party=959

3. Interpreting Descriptions of Collateral=959

B. Sufficiency of Description : Article 9 Security Agreements=960

In re Shirel=960

C. Describing After-Acquired Property=963

Stoumbos v. Kilimnik=964

D. Which Obligations Are Secured?=966

E. Real Estate Mortgages=967

Problem Set 50=968

Assignment 51. Proceeds, Products, and Other Value-Tracing Concepts=971

A. Proceeds=972

1. Definition=972

2. Termination of Security Interest in the Collateral After Authorized Disposition=975

3. Continuation of Security Interest in the Collateral After Unauthorized Disposition=976

Illinois Compiled Statutes Annotated=977

New York Penal Law=978

4. Limitations on the Secured Creditor's Ability to Trace Collateral=980

In re Oriental Rug Warehouse Club, Inc.=982

B. Other Value-Tracing Concepts=984

C. Non-Value-Tracing Concepts=985

D. Liability of Buyers of Collateral=986

Problem Set 51=987

Assignment 52. Tracing Collateral Value During Bankruptcy=989

A. After-Acquired Property and the Proceeds Dilemma=989

In re Cafeteria Operators, L.P.=991

B. The "Equities of the Case" Solution to the Proceeds Dilemma=995

In re Delbridge=996

C. The "Net Proceeds" Solution to the Proceeds Dilemma=997

In re Gunnison Center Apartments, LP=998

D. Cash Collateral in Bankruptcy=1000

Problem Set 52=1001

Chapter 15. Default : The Gateway to Remedies=1005

Assignment 53. Default, Acceleration, and Cure Under State Law=1005

A. Default=1005

Standard Default Provisions=1005

B. When Is Payment Due?=1006

1. Installment Loans=1007

2. Single Payment Loans=1007

3. Lines of Credit=1008

C. Acceleration and Cure=1009

1. Acceleration=1009

2. The Debtor's Right to Cure=1010

Old Republic Insurance Co. v. Lee=1010

Reinstatement=1011

3. Limits on the Enforceability of Acceleration Clauses=1012

J.R. Hale Contracting Co. v. United New Mexico Bank at Albuquerque=1012

D. The Enforceability of Payment Terms=1016

Kham & Nate's Shoes No. 2, Inc. v. First Bank of Whiting=1017

E. Procedures After Default=1020

Problem Set 53=1022

Assignment 54. Default, Acceleration, and Cure Under Bankruptcy Law=1026

In re Moffett(Tidewater Finance Co. v. Moffett)=1026

A. Stage One : Protection of the Defaulting Debtor Pending Reorganization=1029

B. Stage Two : Reinstatement and Cure=1030

1. Modification Distinguished from Reinstatement and Cure=1030

2. Reinstatement and Cure Under Chapter 11=1031

3. Reinstatement and Cure Under Chapter 13=1033

4. When Is It Too Late to File Bankruptcy to Reinstate and Cure or to Modify?=1034

C. Binding Lenders in the Absence of a Fixed Schedule for Repayment=1035

Problem Set 54=1035

Chapter 16. The Prototypical Secured Transaction=1039

Assignment 55. The Prototypical Secured Transaction=1039

A. The Parties=1039

B. Deutsche Approves Bonnie's Loan=1040

C. Deutsche and Bonnie's Document the Loan=1041

1. Security Agreement and Statement of Transaction=1041

2. The Financing Statement=1049

3. The Personal Guarantee=1049

D. Bonnie's Buys Some Boats=1051

1. The Floorplan Agreement=1051

2. The Buy=1054

E. Bonnie's Sells a Boat=1054

F. Monitoring the Existence of the Collateral=1055

Problem Set 55=1056

Miller Indicted on Bank Fraud=1056

Part Two The Creditor-Third Party Relationship=1061

Chapter 17. Perfection=1063

Assignment 56. The Personal Property Filing Systems=1063

A. Competition for the Secured Creditor's Collateral=1063

B. What Is Priority?=1064

Peerless Packing Co. v. Malone & Hyde, Inc.=1065

C. How Do Creditors Get Priority?=1067

D. The Theory of the Filing System=1069

E. The Multiplicity of Filing Systems=1071

National Peregrine, Inc. v. Capitol Federal Savings and Loan Association of Denver(In re Peregrine Entertainment, Limited)=1072

In re Pasteurized Eggs Corporation(Pasteurized Eggs Corporation v. Bon Dente Joint Venture)=1077

F. Methods and Costs of Searching=1078

Problem Set 56=1079

Assignment 57. Article 9 Financing Statements : The Debtor's Name=1082

A. The Components of a Filing System=1082

1. Financing Statements=1083

2. The Index=1083

3. Search Systems=1085

B. Correct Names for Use on Financing Statements=1086

1. Individual Names=1087

2. Corporate Names=1088

3. Partnership Names=1090

4. Trade Names=1090

5. The Entity Problem=1091

C. Errors in the Debtors' Names on Financing Statements=1091

In re EDM Corporation(Hastings State Bank v. Stalnaker, Trustee)=1091

Problem Set 57=1096

Assignment 58. Article 9 Financing Statements : Other Information=1099

A. Introduction=1099

B. Filing Office Errors in Acceptance or Rejection=1100

1. Wrongly Accepted Filings=1100

2. Wrongly Rejected Filings=1100

C. Filer Errors in Accepted Filings=1101

1. Information Necessary Only to Qualify for Filing=1101

2. Required Information=1102

In re Pickle Logging, Inc.(Deere Credit, Inc. v. Pickle Logging, Inc.)=1105

D. Authorization to File a Financing Statement=1107

E. U.C.C. Insurance=1108

Problem Set 58=1109

Assignment 59. Exceptions to the Article 9 Filing Requirement=1112

A. Collateral in the Possession of the Secured Party=1112

1. The Possession-Gives-Notice Theory=1112

2. What Is Possession?=1113

3. Possession as a Means of Perfection=1115

B. Collateral in the Control of the Secured Party=1117

1. Deposit Accounts=1117

2. Investment Property=1118

C. Automatic Perfection of Purchase-Money Security Interests in Consumer Goods=1119

1. Purchase-Money Security Interest(PMSI)=1119

2. Consumer Goods=1120

Gallatin National Bank v. Lockovich(In re Lockovich)=1121

D. Security Interests Not Governed by Article 9 or Another Filing Statute=1124

Bluxome Street Associates v. Fireman's Fund Insurance Co.=1124

E. What Became of the Notice Requirement?=1126

Problem Set 59=1127

Chapter 18. Maintaining Perfection=1131

Assignment 60. Maintaining Perfection Through Lapse and Bankruptcy=1131

A. Removing Filings from the Public Record=1131

1. Satisfaction=1131

Arizona Revised Statutes Annotated=1132

Florida Statutes Annotated=1133

2. Release=1133

3. Article 9 Termination and Release=1134

B. Self-Clearing and Continuation in the Article 9 Filing System=1135

Worthen Bank & Trust Co., N.A. v. Hilyard Drilling Co.(In re Hilyard Drilling Co.)=1137

C. The Effect of Bankruptcy on Lapse and Continuation=1141

In re Schwinn Cycling and Fitness, Inc.(Expeditors International of Washington, Inc. v. The Liquidating Trust)=1141

Problem Set 60=1144

Assignment 61. Maintaining Perfection Through Changes of Name, Identity, and Use=1148

A. Changes in the Debtor's Name=1149

B. New Debtors=1152

C. Changes Affecting the Description of Collateral=1152

D. Exchange of the Collateral=1154

1. Barter Transactions=1154

National Bank of Alaska v. Erickson(In re Seaway Express Corporation)=1156

2. Collateral to Cash Proceeds to Noncash Proceeds=1158

3. Collateral to Cash Proceeds(No New Property)=1159

Problem Set 61=1159

Assignment 62. Maintaining Perfection Through Relocation of Debtor or Collateral=1162

A. State-Based Filing in a National Economy=1162

B. Initial Perfection=1163

1. At the Location of the Debtor=1163

Why the Debtor's State of Incorporation Should Be the Proper Place for Article 9 Filing : A Systems Analysis / Lynn M. LoPucki=1164

2. At the Location of the Collateral=1166

C. Relocation of the Debtor=1166

D. Transfer of the Collateral=1168

E. Nation-Based Filing in a World Economy=1169

F. International Filing Systems=1171

Problem Set 62=1172

Assignment 63. Maintaining Perfection in Certificate of Title Systems=1175

Motor Vehicle Title Systems in the USA and Canada / New Zealand Law Commission=1177

A. Perfection in a Certificate of Title System=1180

B. Accessions=1181

C. In What State Should a Motor Vehicle Be Titled?=1183

D. Motor Vehicle Registration=1184

E. Maintaining Perfection on Interstate Movement of Collateral=1185

1. How It Is Supposed to Work=1185

2. Some Things that Can Go Wrong=1186

3. Movement of Goods Between Non-Certificate and Certificate Jurisdictions=1187

Problem Set 63=1188

Chapter 19. Priority=1191

Assignment 64. The Concept of Priority : State Law=1191

A. Priority in Foreclosure=1191

B. Credit Bidding Revisited=1194

C. Reconciling Inconsistent Priorities=1195

Bank Leumi Trust Co. of New York v. Liggett=1197

D. The Right to Possession Between Lien Holders=1198

The Grocers Supply Co. v. Intercity Investment Properties, Inc.=1198

Frierson v. United Farm Agency, Inc.=1200

E. U.C.C. Notice of Sale=1201

Problem Set 64=1202

Chapter 20. Competitions for Collateral=1205

Assignment 65. Lien Creditors Against Secured Creditors : The Basics=1205

A. How Creditors Become "Lien Creditors"=1205

Judgment Liens on Real and Personal Property=1206

B. Priority Among Lien Creditors=1207

C. Priority Between Lien Creditors and Secured Creditors=1208

People v. Green=1209

D. Priority Between Lien Creditors and Mortgage Creditors=1212

E. Purchase-Money Priority=1212

Problem Set 65=1213

Assignment 66. Lien Creditors Against Secured Creditors : Future Advances=1216

A. Priority of Future Advances : Personal Property=1216

B. Priority of Nonadvances : Personal Property=1218

Uni Imports, Inc. v. Exchange National Bank of Chicago=1218

C. Priority of Future Advances and Nonadvances : Real Property=1222

Shutze v. Credithrift of America, Inc.=1223

Problem Set 66=1227

Assignment 67. Secured Creditors Against Secured Creditors : The Basics=1230

A. Nonpurchase Money Security Interests=1230

1. The Basic Rule : First to File or Perfect=1230

2. Priority of Future Advances=1232

3. Priority in After-Acquired Property=1234

B. Purchase-Money Security Interests=1235

1. Purchase-Money Security Interests Generally=1235

2. Multiple Purchase-Money Security Interests=1237

3. Purchase-Money Security Interests in Inventory=1237

4. Purchase-Money Priority in Proceeds=1238

C. Priority in Commingled Collateral=1240

Problem Set 67=1241

Assignment 68. Buyers Against Secured Creditors=1245

A. Introduction=1245

B. Buyers of Personal Property=1246

1. The Buyer-in-the-Ordinary-Course Exception : U.C.C. §9-320(a)=1246

Daniel v. Bank of Hayward=1249

2. The Buyer-Not-in-the-Ordinary-Course Exception : U.C.C. §§9-323(d) and (e) and 9-317(b)=1254

3. The Authorized Disposition Exception : U.C.C. §9-315(a)(1)=1255

RFC Capital Corporation v. EarthLink, Inc.=1256

4. The Consumer-to-Consumer-Sale Exception : U.C.C. §9-320(b)=1259

C. Buyers of Real Property=1260

Problem Set 68=1261

Table of Cases=1265

Table of Statutes, Regulations, and Restatements=1269

Index=1287