How is a security interest created and how is it perfected? Provide an example. If you are the creditor, what is difference between having a perfected security interest and an unperfected interest? What is a "reorganization" bankruptcy and how is it different than an "ordinary" bankruptcy? Give examples of each.
In a bankruptcy, what rights do secured creditors have over unsecured creditors, and why?
Should federal law be changed that would allow students/former students to discharge their student loans in bankruptcy? Why or why not?
A security interest is created either by an agreement or the operation of law. The security interest is created to get payment of a debt. The person who gets the benefit of a security interest gets preferential rights when secured assets are disposed.
Security interest is perfected by taking additional steps to make it effective against third parties or to continue to be effective if there is a default. These additional steps are possession of the collateral, statutory registration or filing, and notice to the defaulter or the fund holder.
The difference between the unperfected security interest and perfected security interest is that perfected security interest is required to enforce the security against third parties such as the liquidator. The unperfected security interest gives rights to the holder of the security against the person or the firm that grants the security. From a different perspective an unperfected security is an asset that is mortgaged as collateral and is protected from ...
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