Check the timing of a purchase-money security interest filing
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the collateral type and the dates the lawyer supplies, the tool calculates the last day of the 20-day period after the debtor receives possession for goods other than inventory or livestock, and it lists whether an inventory interest was perfected when the debtor received possession. It records the five-year window for the inventory notification. It does not decide that the interest is a purchase-money security interest.
- What the lawyer must review
- UCC Sections 9-103 and 9-324. Section 9-103(b) makes a security interest in goods a purchase-money security interest to the extent the goods are purchase-money collateral, and also to the extent it secures a purchase-money obligation incurred for other inventory or for software in which the secured party holds or held a purchase-money security interest. Section 9-324(a), except as subsection (g) provides, gives priority to a perfected purchase-money security interest in goods other than inventory or livestock if it is perfected when the debtor receives possession or within 20 days thereafter. Section 9-324(b), subject to subsection (c) and except as subsection (g) provides, requires the inventory interest to be perfected when the debtor receives possession, an authenticated notification stating that the sender has or expects a purchase-money security interest in the debtor's inventory and describing that inventory, and receipt of the notification by the holder of the conflicting interest within five years before the debtor receives possession. Subsection (c) applies (b)(2) through (4) only if that holder had filed a financing statement covering the same types of inventory before the purchase-money filing, where perfection is by filing, or before the beginning of the 20-day period in Section 9-312(f), where the interest is temporarily perfected without filing or possession. Livestock priority is in subsections (d) and (e). The lawyer applies subsection (g) and the livestock subsections from the enacting state's text.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes assembling provisional schedules. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Preserve original files and relevant metadata. Document provenance and handling, and seek forensic review where authenticity needs to be resolved.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.