For most goods or guarantees, the purchase money lender must promptly perfect its security interest after the debtor has acquired possession of the goods sold in order to maintain its priority. If the security interest is further developed within this period, it outweighs previously advanced security interests. The UCC-1 funding statement in the annexes has been amended to include a signature for the debtor and the terms of the grant. If properly completed, this form can also serve as a security agreement and UCC-1 funding statement, although it is probably preferable and safer to have a separate security agreement and funding statement. If you are using Form UCC-1 without a separate safeguard agreement, it is recommended that Form UCC-1 contain a more detailed description of the warranties. Conversely, unsecured creditors are engaged in a race to judgment. The creditor of the first judgment, who confiscated the debtor`s assets, prevails over subsequent judgment creditors. However, a secured creditor already has a priority pledge right in the secured property, even without bringing any action. The debtor or agent must sign the security agreement. Guarantee agreements may be void for errors made on behalf of the debtor. Make sure that related companies make sure that the signing of your security contract matches the correct legal name of the debtor. Except as otherwise provided in paragraphs (c) to (i), the interest of the security vis-à-vis the debtor and third parties with respect to security rights is applicable only if: The primacy of security rights over personal property is very similar to the primacy of pledge rights in immovable property.

Generally speaking, the secured creditor, which first «perfected» the interest of the guarantee, is the first priority. To complete the processing, the secured creditor must have a valid security agreement and, in most cases, file a valid financing statement. When the debtor becomes insolvent, the assets are not sufficient to pay all creditors. Other creditors attack any security interest that has a weakness. Therefore, the technical rules of perfection must be followed to the letter. For this reason, you should worry about a previous «floating» or «blanket» from a bank if you plan to take a guarantee interest from a debtor. Second, you may be asking for a higher lender to «step on assets.» Where a lender has an interest in more than one piece of land, it cannot destroy another lender`s interest in protecting a single piece of land unless it is necessary to collect the debt. In other words, the superior creditor may be asked to take action against all other assets of the debtor before going to the land in which you have a security interest. The seizure of a security guarantee right confers on the insured party the rights of redemption provided for in Articles 9 to 315 and also constitutes the attachment of a guarantee right over an obligation to support security. Every seller of goods on credit has the option of demanding a security interest from the purchase money.

The main advantage of an interest in guaranteeing the purchase money lies in the fact that this interest takes particular precedence over other interests for the protection of the same good if special rules are respected. [4] The UZK favours a seller who lends money for a sale, because the debtor/buyer would not have the goods if the seller had not granted credit to the purchase. Therefore, the CSD gives priority to the seller/lender for the products sold. In your security agreement, you want to have the right to contact the debtor`s customer to get direct payment. . . .