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PMSI & Bankruptcy Claims: Understanding Priority

Watch this course to find the exclusive rules on how to avoid pitfalls in PMSI filing and gain priority over other creditors in bankruptcy!

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About this course

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lessonOverview

Creditor  1 - “I’ve filed in my UCC-1. Phew! I just secured $97,000 worth of credit with Acme Corp.”
Creditor 2 - “I’ve perfected my PMSI. I just secured $133,000 worth of credit with Acme Corp.”
Bankruptcy Court- “Since, Creditor 1 just filled the PMSI and not perfected it, the court concludes that Creditor 2 takes the first priority over the PMSI through the general rule of "first to perfect", "first in line".

The above case puts the former creditor in a situation where they cannot have priority over the debtor's assets in bankruptcy. To obtain priority, the secured party must comply with the UCC perfection and notice requirements.  Jerry Bailey from NCS Credit reviews those requirements and explains how to identify and avoid potential traps for the unwary PMSI secured party!!

Key Takeaways:

  1. What is the right time to perfect a Purchase Money Security Interest?
  2. Why PMSI perfection shouldn’t be delayed?
  3. How does a creditor stay compliant with the UCC Article 9 PMSI requirements?
instructor
name title image description
Jerry Bailey Executive Sales and Service Manager, NCS Credit With 25+ years of consulting experience on UCC Article 9, Liens, and other nuances of construction credit, Jerry Bailey is a highly experienced specialist in negotiation, cash flow, budgeting, operations management, and analytical skills.
recommendation
image tag title description link duration
A/R Frauds and Laws Creditor's Guide to Secured Transactions: How to Protect Your A/R Discover how secured transactions can increase your sales while protecting your receivables. https://academy.highako.com/creditors-guide-to-secured-transactions 60 Mins
A/R Frauds and Laws 5 Proactive Steps to Protect Accounts Receivable Before Customer Bankruptcies Learn great strategies and tools to prevent your company from bad debt in case your customer files for bankruptcy! https://academy.highako.com/5-proactive-steps-to-protect-accounts-receivable-before-customer-bankruptcies 60 Mins
Credit Manager B2B Portfolio Risk Analysis During a Recession Learn all about portfolio-risk analysis, corporate credit analysis and bad-debt reserve calculation and estimates for credit managers https://academy.highako.com/portfolio-risk-management-economic-downturn-course 90 Mins

Curriculum

  • PMSI & Bankruptcy Claims: Overview
  • Preview
    PMSI & Bankruptcy Claims: Overview
  • Know Your Responsibility
  • Know Your Responsibility
  • Understanding Value of Security & Collateral
  • Understanding Value of Security & Collateral
  • Priority of Creditor’s Claims
  • Priority of Creditor’s Claims
  • Benefits of Secured Transactions
  • Benefits of Secured Transactions
  • Types of UCC Filings: Blanket & PMSI
  • Blanket UCC Filings
  • Purchase Money UCC Filings
  • PMSI: The Value of Repossession
  • PMSI: The Value of Repossession
  • Two Important Elements
  • Security Agreement
  • Financing Statement or UCC-1
  • Opportunities to Take Security
  • New Customers and Security
  • Existing Companies and Security
  • Disposition of Tangible Collateral
  • Disposition of Tangible Collateral
  • Q&A : Open Discussion
  • Q&A : Open Discussion
  • Certificate and Feedback
  • Assessment
  • Certificate and Feedback
  • PMSI & Bankruptcy Claims: Understanding Priority

About this course

promoImage
description
lessonOverview

Creditor  1 - “I’ve filed in my UCC-1. Phew! I just secured $97,000 worth of credit with Acme Corp.”
Creditor 2 - “I’ve perfected my PMSI. I just secured $133,000 worth of credit with Acme Corp.”
Bankruptcy Court- “Since, Creditor 1 just filled the PMSI and not perfected it, the court concludes that Creditor 2 takes the first priority over the PMSI through the general rule of "first to perfect", "first in line".

The above case puts the former creditor in a situation where they cannot have priority over the debtor's assets in bankruptcy. To obtain priority, the secured party must comply with the UCC perfection and notice requirements.  Jerry Bailey from NCS Credit reviews those requirements and explains how to identify and avoid potential traps for the unwary PMSI secured party!!

Key Takeaways:

  1. What is the right time to perfect a Purchase Money Security Interest?
  2. Why PMSI perfection shouldn’t be delayed?
  3. How does a creditor stay compliant with the UCC Article 9 PMSI requirements?
instructor
name title image description
Jerry Bailey Executive Sales and Service Manager, NCS Credit With 25+ years of consulting experience on UCC Article 9, Liens, and other nuances of construction credit, Jerry Bailey is a highly experienced specialist in negotiation, cash flow, budgeting, operations management, and analytical skills.
recommendation
image tag title description link duration
A/R Frauds and Laws Creditor's Guide to Secured Transactions: How to Protect Your A/R Discover how secured transactions can increase your sales while protecting your receivables. https://academy.highako.com/creditors-guide-to-secured-transactions 60 Mins
A/R Frauds and Laws 5 Proactive Steps to Protect Accounts Receivable Before Customer Bankruptcies Learn great strategies and tools to prevent your company from bad debt in case your customer files for bankruptcy! https://academy.highako.com/5-proactive-steps-to-protect-accounts-receivable-before-customer-bankruptcies 60 Mins
Credit Manager B2B Portfolio Risk Analysis During a Recession Learn all about portfolio-risk analysis, corporate credit analysis and bad-debt reserve calculation and estimates for credit managers https://academy.highako.com/portfolio-risk-management-economic-downturn-course 90 Mins

Curriculum

  • PMSI & Bankruptcy Claims: Overview
  • Preview
    PMSI & Bankruptcy Claims: Overview
  • Know Your Responsibility
  • Know Your Responsibility
  • Understanding Value of Security & Collateral
  • Understanding Value of Security & Collateral
  • Priority of Creditor’s Claims
  • Priority of Creditor’s Claims
  • Benefits of Secured Transactions
  • Benefits of Secured Transactions
  • Types of UCC Filings: Blanket & PMSI
  • Blanket UCC Filings
  • Purchase Money UCC Filings
  • PMSI: The Value of Repossession
  • PMSI: The Value of Repossession
  • Two Important Elements
  • Security Agreement
  • Financing Statement or UCC-1
  • Opportunities to Take Security
  • New Customers and Security
  • Existing Companies and Security
  • Disposition of Tangible Collateral
  • Disposition of Tangible Collateral
  • Q&A : Open Discussion
  • Q&A : Open Discussion
  • Certificate and Feedback
  • Assessment
  • Certificate and Feedback
  • PMSI & Bankruptcy Claims: Understanding Priority