Go. Code Anno. §8.9A-334 (a) (Michie 1950); In re Vincent, 468 B.R. 802, 803 (Bankr. E.D. Va. 2012) [A warranty interest may be created for goods that are facilities or in goods that become facilities. There is no interest in ordinary building materials incorporated into land improvement. The garage track and windows are “ordinary building materials”.
There is no doubt that they have been integrated into the house. Once integrated into a terrestrial improvement, they have no interest in safety. On the contrary, the primacy of rights over building materials is determined by the law of land ownership rights]. If a creditor has an interest in securing your property, it is likely that a security agreement will indicate this. This important contract should not be concluded without careful consideration, as a failure can have serious consequences. Below we`ll look at the basics of security agreements and some details that you may not have considered. As in the case of a change of name of the debtor, the insured party must take steps to remain perfected for more than four months in the guarantee agreement and the guarantees acquired. A change in the legislation in force requires immediate action by the insured party. In accordance with the provisions of Article 9-316 (a), the insured party must, within perhaps a very short period of time after the event, file a financing statement labeling the correct debtor in the new jurisdiction. If the insured party does not create rights within the period in force, its interest in the guarantee will no longer be satisfied, including with regard to the guarantees acquired before the modification. Normally, security interests are interested in a security interest.
Therefore, where a debtor sells or transfers other security rights to another party, the secured debtor is bound by the new debtor to the PEA security agreement. In accordance with the provisions of Article 9-508 (b) (2), the insured party must file before the expiry of this four-month period a first financing statement containing the name of the new debtor (highlighted only here). While it is apparent from that language that a change in the name of the UCC-3 debtor would not be sufficient, Official Note 5 to Article 9(512) suggests that an amendment to PERIOD 3 to supplement the debtor`s new name would satisfy, at least in some cases, the requirement of the “first funded declaration”. A purchase money security interest works best for a seller of durable goods that the buyer will keep for a long time. The seller of heavy machinery is a good example. A food supplier for a restaurant will not be very interested in an interest in the security of purchase money, as goods are resold quickly or lose value with age. A building material supplier usually has the same problem. The wood delivered to a carpentry contractor will shortly be resold to the client and integrated into the property. The contracting authority generally requires the carpenter`s subcontractor to transport the timber “without deposit rights” and “without safety interests”. An often confusing “perfect” term linked to a security agreement does not mean that the document is error-free….