In Louisiana, when a secured party has a purchase money security interest (PMSI) in inventory, perfection is generally achieved by filing a financing statement before or within twenty days after the debtor receives possession of the inventory. However, for a PMSI in inventory, a secured party must also give notice to any other secured party or lienholder who has filed a financing statement covering the same collateral and whose filing has not lapsed. This notice must be sent before the debtor receives possession of the inventory. The notice must state that the sender has or expects to acquire a PMSI in inventory of the debtor and must describe the inventory. This “notice-filing” requirement for PMSI in inventory is a crucial element that distinguishes it from PMSIs in other types of collateral, where only filing or possession is typically required for perfection. Failure to provide this notice to a prior perfected secured party can subordinate the PMSI to the prior secured party’s interest, even if the PMSI is otherwise properly perfected. Louisiana law, specifically La. R.S. 10:9-324(b), codifies this requirement, mirroring the Uniform Commercial Code provisions. The question asks about the correct method of perfecting a PMSI in inventory in Louisiana, considering the requirements for such a security interest.

In Louisiana secured transactions, the concept of “attachment” is crucial for a security interest to become enforceable against the debtor. Attachment occurs when a creditor gives value, the debtor has rights in the collateral, and there is a security agreement that describes the collateral. For the security interest to be perfected, which provides protection against third parties, a creditor must also satisfy the requirements of perfection, which typically involves filing a financing statement or taking possession of the collateral. However, for certain types of collateral, like deposit accounts, investment property, and letter-of-credit rights, control is the exclusive method of perfection. Louisiana law, following the UCC, specifically addresses these control-based perfection methods. A security interest in a deposit account, for instance, is perfected by the secured party obtaining control over the account. Control is defined in Louisiana Revised Statute 10:9-104 as either becoming the bank’s customer with respect to the deposit account, or agreeing with the bank that the bank will comply with instructions from the secured party directing disposition of the funds without the bank’s compliance with an instruction from the debtor. Therefore, without control, the security interest in the deposit account remains unperfected, leaving the secured party vulnerable to claims from other creditors or a buyer of the collateral.

In Louisiana, under Article 9 of the Uniform Commercial Code, the perfection of a security interest in deposit accounts is generally accomplished by control. Control over a deposit account is established when the secured party is the bank in which the deposit account is maintained, or when the debtor has agreed in writing that the bank will comply with the secured party’s instructions regarding the deposit account. Louisiana Revised Statute 10:9-104(a) explicitly states that a security interest in a deposit account as collateral can only be perfected by control. Filing a financing statement is generally not sufficient for perfection of a security interest in a deposit account. Therefore, if Bayou Bank only filed a UCC-1 financing statement and did not obtain control over the deposit account held at Crescent City Bank, its security interest would not be perfected against a subsequent lien creditor or a buyer of the account. The debtor’s filing for bankruptcy would also trigger the automatic stay, and without perfected status, Bayou Bank would likely not have priority over the bankruptcy estate’s claim to the deposit account. The scenario specifically states that Bayou Bank filed a UCC-1 financing statement but does not mention obtaining control. Thus, the failure to obtain control means the security interest is unperfected in Louisiana for deposit accounts.

The scenario involves a dispute over collateral, specifically specialized manufacturing equipment, between a prior secured party and a subsequent buyer who claims to have purchased the equipment free of the security interest. Louisiana Revised Statute 10:9-317(b) dictates that a buyer in ordinary course of business takes free of a security interest that attaches to the goods after the security interest is perfected, unless the buyer has knowledge of the security interest. However, this protection does not extend to a buyer of consumer goods who buys without knowledge of the security interest, unless a financing statement covering the goods has been filed. More critically, Revised Statute 10:9-320(a) states that a buyer in ordinary course of business takes goods free of a security interest that secures an obligation incurred because of the collateral, unless the buyer knows that the sale is one of ordinary course of business of the seller. In this case, the buyer, Bayou Fabrication LLC, is a business purchasing equipment for its own operations, not for resale, and therefore is not a buyer in the ordinary course of business as defined in Revised Statute 10:1-201(9). The UCC definition of “buyer in ordinary course of business” generally requires the buyer to purchase the goods in good faith, without knowledge that the sale violates the rights of the secured party, and from a person in the business of selling goods of that kind. Bayou Fabrication LLC’s purchase of specialized equipment for its manufacturing operations does not fit this definition. Consequently, the prior perfected security interest of Crescent Capital Bank remains attached to the equipment, and Crescent Capital Bank can repossess the collateral.

The core issue here is the perfection of a security interest in a deposit account. Under Louisiana Revised Statutes § 10:9-104, a security interest in a deposit account as original collateral can only be perfected by control. Control is defined in Louisiana Revised Statutes § 10:9-104(a) as the bank in which the deposit account is maintained having agreed to comply with the secured party’s instructions without further prompt by the debtor. In this scenario, Bayou Bank is the bank where the deposit account is held. Bayou Bank taking action to release the funds upon the debtor’s instruction, rather than the secured party’s, indicates that Bayou Bank has not granted control to Fleur-de-lis Finance. Therefore, Fleur-de-lis Finance has not perfected its security interest in the deposit account. Perfection is a prerequisite for priority over other creditors and for rights against a bankruptcy trustee. Since the security interest is unperfected, the trustee in bankruptcy for Cajun Foods, Inc. would have priority over Fleur-de-lis Finance’s claim to the deposit account. The bankruptcy trustee has the status of a hypothetical lien creditor without notice, and an unperfected security interest is subordinate to such a creditor. Therefore, the trustee can avoid the unperfected security interest.

The scenario describes a situation where a secured party, Bayou Bank, has a security interest in inventory owned by Cajun Construction LLC. Cajun Construction then sells some of this inventory to a buyer, Delta Distributors, who is a buyer in the ordinary course of business. Under Louisiana Revised Statutes Title 10, Section 9-320, a buyer in the ordinary course of business generally takes free of a security interest created by the seller, even if the security interest is perfected and even if the buyer knows of its existence. This protection is fundamental to the smooth functioning of commerce, allowing buyers to acquire goods without the burden of investigating the seller’s financing arrangements. The key here is that Delta Distributors purchased the inventory from Cajun Construction, the seller, and Cajun Construction was in the business of selling such inventory. Therefore, Delta Distributors, as a buyer in the ordinary course of business, takes the inventory free of Bayou Bank’s security interest. The bank’s recourse would be against Cajun Construction for breach of the security agreement, not against Delta Distributors for the collateral.

In Louisiana, a security interest in a movable good, such as inventory or equipment, is perfected by filing a financing statement in the public records. However, for certain types of collateral, particularly those that are registered with a state agency, perfection occurs through notation on a certificate of title. Louisiana Revised Statute 10:9-311(a) specifically addresses this, stating that compliance with a certificate of title statute is the method of perfection for goods covered by a certificate of title. This is crucial because filing a financing statement with the Secretary of State, while the standard for most movables, is ineffective if the collateral is subject to a certificate of title statute. The statute aims to provide a single, clear place for third parties to ascertain security interests in such goods. Therefore, if a boat, which is typically documented with the U.S. Coast Guard or registered with the Louisiana Department of Wildlife and Fisheries, is subject to a security interest, the secured party must ensure the security interest is noted on the certificate of title to achieve perfection. Failure to do so means the security interest is unperfected, leaving the secured party vulnerable to other creditors and purchasers. The question tests the understanding of this exception to the general filing rule for perfection in Louisiana.

Under Louisiana Revised Statute 10:9-310, a security interest is perfected when it has attached and when a financing statement has been filed or possession or control is taken of the collateral, depending on the type of collateral. For accounts, general intangibles, and certain other types of collateral, filing a financing statement is the primary method of perfection. The question involves a security interest in accounts, which are intangible collateral. Louisiana follows the general UCC rule that perfection for accounts is achieved by filing a financing statement. The security agreement between Bayou Bank and Cypress Lumber Company created the security interest, and attachment occurred when the agreement was made, value was given, and Cypress Lumber had rights in the collateral. However, attachment alone does not grant priority over third parties. Perfection is required to establish priority. Since Cypress Lumber is a buyer of accounts in the ordinary course of business, its rights are governed by the rules of priority. A buyer of accounts in the ordinary course of business takes free of a security interest created by their seller, even if the security interest is perfected, unless the buyer has knowledge of the security interest. However, the question states that Bayou Bank *did* file a financing statement. This filing perfects Bayou Bank’s security interest. While a buyer in the ordinary course of business generally takes free of a security interest created by their seller, this protection typically applies to security interests granted by the seller to *their* secured party. In this scenario, Cypress Lumber is purchasing accounts *from* Bayou Bank’s debtor, not buying collateral from Bayou Bank itself. The critical point is the perfection of Bayou Bank’s security interest in the accounts of Acadian Timber. Filing a financing statement is the method of perfection for accounts in Louisiana. Therefore, Bayou Bank’s perfected security interest in the accounts of Acadian Timber, which were sold to Cypress Lumber, is effective against Cypress Lumber, assuming Cypress Lumber had knowledge or the filing itself constitutes notice. The UCC generally provides that a buyer of accounts takes subject to a perfected security interest in those accounts unless the buyer qualifies for a specific exception, such as being a buyer in ordinary course of business *of the secured party’s interest*, which is not the case here. The filing of the financing statement by Bayou Bank perfects its security interest in Acadian Timber’s accounts. Cypress Lumber, as a purchaser of these accounts, is therefore subject to Bayou Bank’s perfected security interest.

The core issue revolves around the priority of security interests when a buyer in the ordinary course of business purchases goods from a merchant who has granted a security interest in their inventory. Under Louisiana Revised Statutes § 10:9-320, a buyer in the ordinary course of business takes free of a security interest created by the seller even though the security interest is perfected and even though the buyer knows of its existence, unless the buyer knows that the sale is in violation of the security agreement. This protection is a fundamental aspect of facilitating commerce by ensuring that ordinary course buyers can acquire goods without the burden of investigating the seller’s financing arrangements. In this scenario, Bayou Boats, Inc. is a merchant dealing in goods of the kind that are subject to the security interest granted to Crescent Bank. When a consumer, Ms. Dubois, purchases a boat from Bayou Boats, Inc. in the ordinary course of business, her ownership is generally unencumbered by Crescent Bank’s prior security interest in Bayou Boats’ inventory. The knowledge exception is narrow; mere knowledge of the existence of a security interest is insufficient. Ms. Dubois would need to have knowledge that the specific sale itself was in violation of the security agreement, which is not indicated in the facts. Therefore, Ms. Dubois takes the boat free of Crescent Bank’s security interest.

The scenario involves a purchase money security interest (PMSI) in inventory. A PMSI arises when a secured party gives value to a debtor for the purpose of enabling the debtor to acquire rights in or the use of collateral, and the value so given is in fact used for that purpose. In Louisiana, as under the Uniform Commercial Code generally, a PMSI holder must satisfy specific requirements to maintain priority over other secured creditors. For inventory, this requires not only that the PMSI be perfected by filing a financing statement but also that the secured party give notification to any other secured party who has filed a financing statement covering the same goods or has perfected a security interest in the same goods. This notification must be sent within twenty-five days before or twenty-five days after the debtor receives possession of the collateral. Furthermore, the notification must state that the sender has or expects to acquire a PMSI in inventory of the debtor and describe the inventory. In this case, Bayou Bank has a prior perfected security interest in all of Amite Appliances’ inventory. Crescent Finance provides Amite Appliances with a loan to purchase new refrigerators, thus holding a PMSI in those refrigerators. For Crescent Finance’s PMSI to have priority over Bayou Bank’s prior perfected security interest in the same inventory, Crescent Finance must have perfected its PMSI by filing and provided the requisite notification to Bayou Bank within the specified timeframe. Since Crescent Finance filed its financing statement and sent the notification to Bayou Bank on March 15th, which was within twenty-five days before Amite Appliances received possession of the refrigerators on April 1st, Crescent Finance has met the requirements for PMSI priority in the inventory. Therefore, Crescent Finance’s security interest in the refrigerators has priority over Bayou Bank’s security interest.

The question concerns the priority of security interests in inventory financed by a lender in Louisiana. Under Louisiana Revised Statute 10:9-324, a secured party who finances the inventory of a debtor has priority over a conflicting security interest in the same inventory if certain conditions are met. These conditions include: (1) the secured party has perfected its security interest in the inventory by filing a financing statement; (2) the secured party gives new value to the debtor; and (3) the financing statement covering the inventory is filed before the debtor receives possession of the inventory. In this scenario, Bayou Bank filed its financing statement on January 1st and made its loan on January 15th, before Creole Corp. received the inventory. Bayou Bank’s security interest in the inventory is therefore perfected and has priority. The question asks about the priority of Bayou Bank’s security interest in the inventory itself. Since Bayou Bank’s filing and advance occurred before Creole Corp. received possession of the inventory, Bayou Bank has priority over any other security interest in that specific inventory. This priority is established by the “first-in-time, first-in-right” rule for perfection, coupled with the specific priority rules for inventory financiers under Article 9. Bayou Bank’s security interest in the inventory takes precedence over Creole Corp.’s subsequently perfected interest in the same goods.

The scenario involves a purchase money security interest (PMSI) in equipment. Under Louisiana law, as governed by Article 9 of the Uniform Commercial Code, a PMSI creditor must file a financing statement to perfect its security interest. This filing must occur within a specific timeframe to ensure priority over other creditors, including those with a prior perfected security interest in after-acquired property. Louisiana’s adoption of the UCC generally follows the national standard, which typically allows a grace period for filing a PMSI. Specifically, for goods that become subject to a security interest under a PMSI, the financing statement must be filed within twenty days after the debtor receives possession of the collateral. This twenty-day period is critical for establishing priority. If the filing occurs after this period, the PMSI holder’s interest may be subordinate to a previously perfected security interest. In this case, Bayou Bank had a perfected security interest in all of Acadiana Machinery’s equipment, including after-acquired equipment. When Acadiana Machinery purchased the new industrial press, the seller, Delta Industrial Sales, obtained a PMSI in that press. Delta Industrial Sales filed its financing statement on the thirtieth day after Acadiana Machinery took possession of the press. Since the filing occurred outside the twenty-day grace period, Delta Industrial Sales’ PMSI is subordinate to Bayou Bank’s prior perfected security interest in all of Acadiana Machinery’s equipment. Therefore, Bayou Bank has priority concerning the industrial press.

In Louisiana, when a secured party seeks to repossess collateral after a debtor’s default, the Uniform Commercial Code (UCC) as adopted by Louisiana, specifically Article 9, governs the process. Article 9, as interpreted in Louisiana, permits repossession without judicial process if it can be done without a breach of the peace. A breach of the peace is a critical concept. While specific definitions can evolve through case law, generally, it involves conduct that disturbs public order or involves violence, threats of violence, or even unauthorized entry into a dwelling. For example, entering a debtor’s home without permission or using force to gain entry would likely constitute a breach of the peace. However, taking a vehicle from a driveway or a publicly accessible parking lot without force is typically permissible. The question asks about the most appropriate action to avoid a breach of the peace when repossessing a boat from a private marina slip. A marina slip is generally considered private property, and access may be restricted. Therefore, attempting to repossess the boat by entering the marina without authorization or by using force to access the slip would likely constitute a breach of the peace. The most prudent course of action to avoid this is to obtain the debtor’s voluntary surrender of the collateral or, if that is not possible, to seek judicial intervention through a replevin action. This ensures compliance with Louisiana’s laws and protects the secured party from liability for wrongful repossession.

The core issue here is determining the priority of competing security interests in a mixed collateral situation, specifically when one secured party has perfected by possession and another by filing. Louisiana law, like other jurisdictions, follows Article 9 of the Uniform Commercial Code. When a secured party takes possession of collateral, that possession generally perfects the security interest. However, the UCC also addresses situations where collateral is comprised of multiple types. In this scenario, the collateral is a truck (a vehicle) and accounts receivable generated from the sale of that truck. For the truck, a security interest is typically perfected by filing a financing statement with the Louisiana Secretary of State or by noting the lien on the certificate of title, as per Louisiana Revised Statutes § 32:701 et seq. for motor vehicles. However, UCC § 9-313 allows for perfection by possession for certain types of goods. For accounts, perfection is achieved by filing a financing statement under UCC § 9-310. The critical UCC provision here is § 9-334, which deals with fixtures and accessions. While a truck isn’t typically a fixture, the principle of how security interests attach and gain priority in parts of collateral that might be considered “attached” or “related” is relevant. More directly, UCC § 9-335 addresses accessions, which are goods installed or affixed to other goods. The security interest in the whole is generally superior to the security interest in the accession, unless specific exceptions apply. In this case, the accounts receivable are generated from the sale of the truck. The security agreement grants a security interest in the truck and “all proceeds derived from the sale or disposition of the truck.” Accounts receivable are a form of proceeds. Under UCC § 9-324, a purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory and its identifiable proceeds. However, this is not a purchase-money security interest situation. When a security interest is perfected in collateral, that perfection generally extends to identifiable proceeds of that collateral under UCC § 9-315. The question is about the priority of the security interest in the accounts receivable. Since the security interest in the truck was perfected by possession, and the accounts are proceeds of that truck, the security interest in the accounts will also be perfected, at least for a period, as proceeds. However, to maintain continuous perfection in the accounts as original collateral or as proceeds beyond a certain point (typically 20 days, per UCC § 9-315(d)), a separate filing would be required for the accounts. The question asks about the priority of the security interest in the accounts receivable. The party who perfected by filing for the accounts has a perfected security interest in those accounts. The party who perfected by possession of the truck has a security interest in the truck and its proceeds. Under UCC § 9-322, general priority rules apply. If both security interests are perfected, priority is determined by the order of filing or perfection, whichever occurs first. The security interest in the accounts was perfected by filing. The security interest in the truck was perfected by possession. The accounts are proceeds of the truck. UCC § 9-315(c) states that a security interest in collateral also perfects in its identifiable proceeds. However, UCC § 9-315(d) limits this, stating that perfection in proceeds is not good beyond 20 days unless the financing statement filed for the original collateral also covers the proceeds, or the proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement covering the original collateral was filed, or the secured party obtains a new filing. In this scenario, the filing for the accounts is the first to perfect the security interest in the accounts themselves. The possession of the truck perfects the security interest in the truck. While the security interest in the truck extends to proceeds, the separate and earlier filing for the accounts would typically give that party priority in the accounts, as it was perfected first in that specific collateral type. The possession of the truck does not automatically perfect the security interest in the accounts as original collateral. Therefore, the party who filed for the accounts receivable has priority in those accounts because their security interest was perfected by filing in the accounts themselves, and this perfection occurred before any separate perfection in the accounts as proceeds from the truck. The possession of the truck perfected the security interest in the truck, and that perfection extends to proceeds for a limited time, but a prior, separate perfection in the proceeds themselves generally trumps. Final Answer: The security interest perfected by filing for the accounts receivable has priority.

In Louisiana secured transactions, the perfection of a security interest in certain types of collateral requires specific filing procedures. For fixtures, which are goods that become so related to particular real property that an interest in them arises under real property law, Article 9 of the Uniform Commercial Code, as adopted by Louisiana (La. R.S. § 10:9-334), dictates that perfection must occur by filing a fixture filing. A fixture filing is a financing statement that is filed in the real property records and indicates that it covers fixtures. This filing must be made in the office designated by Louisiana law for the recording of mortgages on the related real property. The financing statement must also sufficiently describe the real property to which the fixtures are affixed. If a security agreement covers both goods that are or are to become fixtures and other goods or accessions, the filing of a financing statement covering the fixtures will generally perfect the security interest in both, provided the financing statement meets the requirements for fixture filings. The effectiveness of the fixture filing is governed by the rules concerning the duration of financing statements and their continuation. Therefore, to perfect a security interest in a commercial dishwasher that will be installed in a restaurant in New Orleans, becoming a fixture, the secured party must file a financing statement in the mortgage records of the parish where the restaurant is located, specifically identifying the real property.

The core issue here is the priority of security interests when a buyer in the ordinary course of business purchases goods from a merchant who is a debtor under a security agreement. Article 9 of the Uniform Commercial Code, as adopted in Louisiana, addresses this through specific provisions. A buyer in the ordinary course of business (BIOC) takes free of a security interest created by their seller, even if the BIOC knows of the security interest, provided the BIOC does not know that the sale is in violation of the security agreement. This protection is fundamental to facilitating commerce. In this scenario, Bayou Boats, Inc. is a merchant dealing in boats, and the security interest held by Crescent Capital LLC was created by Bayou Boats, Inc. itself. When Anya purchases a boat from Bayou Boats, Inc., she is acting as a buyer in the ordinary course of business because she is purchasing in good faith, without knowledge that the sale violates the security agreement, and from a merchant in the business of selling such goods. Therefore, Anya takes the boat free of Crescent Capital LLC’s security interest. The perfection of Crescent Capital’s security interest through filing is irrelevant to Anya’s status as a BIOC who takes free of the security interest created by her seller. The financing statement filed by Crescent Capital only perfects its security interest against subsequent purchasers and other creditors of Bayou Boats, Inc., not against a BIOC purchasing from Bayou Boats, Inc. in the ordinary course of business.

The scenario involves a dispute over collateral priority between two secured parties in Louisiana. Bayou Bank has a properly perfected security interest in all of the inventory of Cajun Foods, Inc., which includes a specific fleet of delivery vans. The security agreement with Bayou Bank clearly describes the vans as part of the collateral. Subsequently, Cajun Foods obtains a loan from Acadiana Credit Union, and Acadiana Credit Union takes a purchase-money security interest (PMSI) in the same fleet of delivery vans, properly files a financing statement, and takes possession of the vans. Under Louisiana Revised Statute 10:9-324, a PMSI in goods other than inventory has priority over a conflicting security interest in the goods if the PMSI is perfected when the debtor receives possession of the goods or within twenty days thereafter. However, for inventory, a PMSI generally has priority over a conflicting security interest in the inventory if the PMSI is perfected before the debtor receives possession of the inventory. In this case, Bayou Bank’s security interest attached and was perfected prior to Cajun Foods taking possession of the vans. Acadiana Credit Union’s PMSI, while perfected by filing and possession, was taken after Bayou Bank’s interest was established. Crucially, for inventory, the perfection of a PMSI must occur before the debtor receives possession of the inventory to gain priority over a prior perfected security interest. Since Cajun Foods had already received possession of the vans when Acadiana Credit Union’s PMSI was perfected, and Bayou Bank’s security interest was perfected first and covered the inventory, Bayou Bank retains priority over the vans. The fact that Acadiana Credit Union took possession of the vans is relevant for other types of collateral or in different priority contests, but not for establishing PMSI priority over inventory against a prior perfected secured party when possession is taken after the debtor already possesses the goods. Therefore, Bayou Bank’s prior perfected security interest in the inventory, which included the vans, maintains its priority.

The question concerns the perfection of a security interest in accounts receivable under Louisiana’s Article 9 of the Uniform Commercial Code. Under UCC § 9-309(2), a security interest in a “supporting obligation” is automatically perfected if the security interest in the “related obligation” is perfected. An account, as defined in UCC § 9-102(a)(2), is a right to payment of a monetary obligation, whether or not earned by performance. A supporting obligation, as defined in UCC § 9-102(a)(77), is a letter of credit, guaranty, or other accommodation that supports payment or performance of an obligation. In this scenario, the promissory note represents the related obligation, and the security interest in the promissory note is perfected by possession. The accounts receivable are directly tied to the performance of the maker of the promissory note, thus constituting a supporting obligation. Consequently, the perfection of the security interest in the promissory note by possession automatically perfects the security interest in the supporting accounts receivable without any further action. Filing a financing statement for the accounts receivable would be a valid method of perfection, but it is not the *only* method, and the automatic perfection rule applies here.

In Louisiana, the perfection of a security interest in deposit accounts is governed by Article 9 of the Uniform Commercial Code. Under UCC § 9-312(b), a security interest in deposit accounts can only be perfected by control. Control is defined in UCC § 9-104 as occurring when the secured party is the bank in which the deposit account is maintained, or when the secured party obtains the agreement of the bank in which the deposit account is maintained to comply with the secured party’s instructions concerning the deposit account. Therefore, filing a financing statement alone is insufficient to perfect a security interest in a deposit account. The security interest is automatically perfected when it attaches if the collateral is a deposit account and the secured party has control. However, if control is obtained after attachment, perfection occurs at that time. In this scenario, the bank itself is the secured party and holds the deposit account, thus automatically having control and a perfected security interest from the moment of attachment.

In Louisiana, under Article 9 of the Uniform Commercial Code, a purchase money security interest (PMSI) in inventory generally requires both attachment and perfection. Attachment occurs when the debtor receives value, the debtor has rights in the collateral, and a security agreement is in place that describes the collateral. Perfection, for inventory, is typically achieved by filing a financing statement before or within a short period after the debtor receives possession of the inventory. However, for a PMSI in inventory, UCC § 9-324(b) provides a special priority rule. This rule states that a PMSI lender in inventory will have priority over a conflicting security interest in the same inventory if the PMSI lender perfects by filing and also gives notice in writing to any other secured party who has filed a financing statement covering the inventory or who has a perfected security interest in the inventory before the date of the filing of the PMSI lender’s financing statement. This notice must be given before the debtor receives possession of the inventory. The purpose of this notice is to alert prior secured parties that new inventory financing is being extended, allowing them to re-evaluate their position. Without this specific notification to the prior secured party, the PMSI in inventory will not have superpriority over the earlier perfected security interest. The prompt specifies that the prior lender, Bayou Bank, already has a perfected security interest in all of Aurelia’s inventory. For Crescent Capital to achieve superpriority for its PMSI in the new inventory, it must file its financing statement and provide written notice to Bayou Bank before Aurelia receives the new inventory. Since Crescent Capital failed to provide this notice to Bayou Bank, its PMSI in the new inventory does not take priority over Bayou Bank’s existing perfected security interest. Therefore, Bayou Bank retains its priority.

The question revolves around the concept of “after-acquired property” in Louisiana secured transactions, specifically concerning the perfection of a security interest in inventory that is constantly changing. Under Louisiana Revised Statute 10:9-310, a security interest in favor of a person who provides new value and receives a security interest in return for the collateral is generally perfected when it attaches. However, the critical factor here is the nature of the collateral as inventory, which implies continuous turnover. For inventory, a purchase money security interest (PMSI) can be perfected by filing a financing statement before or within twenty days after the debtor receives possession of the collateral. More broadly, for a non-PMSI security interest in inventory that is constantly changing, the secured party must ensure its financing statement remains effective. Louisiana Revised Statute 10:9-315(a)(1) states that a security interest continues in collateral even if it is sold, exchanged, or otherwise disposed of, and also continues in any identifiable proceeds of the collateral. Therefore, a properly filed financing statement covering the initial inventory would also cover after-acquired inventory and any proceeds thereof, assuming the security agreement grants a security interest in after-acquired property. The perfection of the security interest in the original inventory automatically extends to the after-acquired inventory as it comes into existence, provided the security agreement and financing statement cover it. The key is the continuous perfection of the security interest in the shifting mass of inventory. The filing of the initial financing statement for the original inventory, which covers after-acquired inventory and proceeds, maintains perfection as new inventory is acquired.

In Louisiana, when a secured party has a perfected security interest in collateral, and that collateral is sold in a transaction that does not require a disposition of collateral under Article 9, the security interest generally continues in the collateral. This is governed by Louisiana Revised Statute 10:9-315(a)(1), which states that a security interest or agricultural lien that is perfected continues even if the collateral is sold, exchanged, leased, licensed, or otherwise disposed of and is not authorized by the secured party. The buyer of the collateral takes the collateral subject to the perfected security interest unless one of the exceptions in Article 9 applies. One such exception is found in Louisiana Revised Statute 10:9-317(b), which protects certain buyers from unperfected security interests. However, in this scenario, the security interest was perfected. Another key provision is Louisiana Revised Statute 10:9-320, which protects ordinary course buyers of goods from a seller who is a merchant dealing in goods of that kind. However, this protection typically applies to unperfected security interests or those perfected in a manner that would not carry over to a buyer in the ordinary course. In this case, the perfected security interest in the antique armoire, which is tangible personal property, would generally follow the collateral. The fact that the sale was not an Article 9 disposition means the secured party did not have to follow the strict notice and sale procedures of Article 9 for that particular transaction. The original perfection by filing a financing statement in Louisiana is effective against subsequent purchasers, including a buyer in the ordinary course of business, unless a specific UCC exception overrides it. The sale by the antique shop owner to a customer is a sale of goods. Louisiana Revised Statute 10:9-320(a) provides that a buyer in ordinary course of business of goods in which a security interest has been perfected by filing takes free of the security interest. This is a crucial exception to the general rule that a perfected security interest continues. The antique shop owner is a merchant dealing in goods of that kind, and the customer is buying in the ordinary course of business. Therefore, the customer takes the armoire free of the prior perfected security interest.

The core issue in this scenario revolves around the perfection of a security interest in goods that are to become fixtures. Under Louisiana Revised Statute 10:9-334, a security interest in fixtures is governed by specific rules. For a security interest in fixtures to be effective against subsequent purchasers of the real property, the secured party must file a fixture filing. A fixture filing is a UCC-1 financing statement that contains additional information, specifically describing the collateral as fixtures and providing a description of the affected real estate. The filing must occur in the office where a mortgage on the real estate would be filed or recorded. In this case, Bayou Bank’s initial filing in the Secretary of State’s office perfected its security interest in the equipment as general intangibles or inventory, but it did not constitute a fixture filing. When the equipment was installed and became a fixture, the security interest in the fixtures was unperfected against a subsequent owner of the real estate who had no notice of Bayou Bank’s unperfected security interest. Consequently, the buyer of the property, having purchased the real estate without notice of Bayou Bank’s claim, takes the property free of Bayou Bank’s unperfected security interest in the fixtures. The perfection of a security interest in fixtures requires a specific fixture filing, not just a general UCC-1 filing.

The question concerns the priority of a purchase money security interest (PMSI) in inventory under Louisiana’s Article 9 of the Uniform Commercial Code. For a PMSI in inventory to have priority over a prior perfected security interest, the PMSI holder must satisfy several conditions. First, the PMSI must be perfected when the debtor receives possession of the inventory. Second, the PMSI holder must give authenticated notification to any secured party whose security interest has already been perfected and who has filed a financing statement covering the inventory. This notification must be given before the delivery of the inventory to the debtor by the secured party. The notification must state that the PMSI holder expects to acquire a PMSI in inventory of the type described. In this scenario, Bayou Bancorp’s security interest is perfected. Cypress Capital’s PMSI in the new inventory is also perfected by filing. However, Cypress Capital failed to provide the required authenticated notification to Bayou Bancorp before the delivery of the inventory. Louisiana Revised Statute § 10:9-324(b) specifically addresses PMSI priority in inventory and mandates this notification requirement. Without this notification, Cypress Capital’s PMSI in the inventory, despite being perfected, does not take priority over Bayou Bancorp’s prior perfected security interest. Therefore, Bayou Bancorp retains its priority.

The core issue in this scenario revolves around the priority of security interests when a debtor moves collateral from one state to another. Louisiana Revised Statutes Title 10, Chapter 9, which governs secured transactions, largely adopts the principles of Article 9 of the Uniform Commercial Code. Specifically, the perfection and priority of a security interest in goods that are covered by a certificate of title are determined by the law of the jurisdiction where the goods are located when the last event occurred with respect to which the filing of a financing statement would be required to give notice of the security interest. Louisiana Revised Statutes § 10:9-303 states that the law of the jurisdiction where goods are located governs perfection of a security interest in goods that are covered by a certificate of title. If, after goods of a type described in that section are located in one jurisdiction, the goods become covered by a certificate of title issued by another jurisdiction while the goods are so located, then the law of the jurisdiction that issued the certificate of title governs perfection from and after the issuance of the certificate. In this case, the truck was located in Texas when the security interest was perfected by filing in Texas. When the truck was moved to Louisiana and subsequently covered by a Louisiana certificate of title, the law of Louisiana, specifically the perfection requirements for titled goods, would govern. Since the secured party failed to re-perfect its interest in Louisiana by complying with Louisiana’s certificate of title statutes within the applicable grace period (typically 20 days for goods covered by a certificate of title under UCC § 9-316(a)(2) and Louisiana RS § 10:9-316), its security interest is unperfected in Louisiana as against a buyer in the ordinary course of business. Therefore, the buyer in the ordinary course of business takes the truck free of the unperfected security interest.

In Louisiana secured transactions law, the concept of “attachment” refers to the point at which a security interest becomes enforceable against the debtor. For a security interest to attach, three conditions must be met: value must be given by the secured party, the debtor must have rights in the collateral, and there must be an authenticated security agreement describing the collateral. The question focuses on the scenario where a buyer purchases goods from a seller who has a pre-existing security interest in those goods from a prior lender. The buyer is a “buyer in the ordinary course of business” (BIOC). Under Louisiana Revised Statute 10:9-320, a BIOC generally takes free of a security interest created by their seller, even if the security interest is perfected and the buyer knows of its existence. This is a fundamental protection for ordinary course buyers to ensure the free flow of commerce. The key is that the security interest must have been created by the seller of the goods to the buyer. If the security interest was created by a previous owner and continues to encumber the goods when the seller acquires them, the BIOC protection might not apply to that prior security interest. In this case, the security interest was granted by “Magnolia Motors” to “Bayou Bank” and attached to the inventory. When “Magnolia Motors” sold a vehicle from that inventory to “Cajun Cars,” who is a BIOC, the security interest created by “Magnolia Motors” remains attached to the vehicle. However, the BIOC protection under 10:9-320 shields Cajun Cars from the security interest created by its seller, Magnolia Motors. Therefore, Cajun Cars takes the vehicle free of Bayou Bank’s security interest.

The question revolves around the concept of attachment and perfection of a security interest under Louisiana’s version of Article 9 of the Uniform Commercial Code. Attachment occurs when a secured party gives value, the debtor has rights in the collateral, and there is a security agreement authenticated by the debtor. Perfection, on the other hand, is the process by which a secured party establishes priority over other creditors. For inventory, perfection is typically achieved through filing a financing statement. However, there are nuances regarding the priority of purchase-money security interests (PMSIs) in inventory. A secured party extending credit to a debtor to acquire inventory has a PMSI. To maintain priority over other secured parties, including a prior secured party who has perfected a security interest in after-acquired inventory, the PMSI holder must, among other things, notify the prior secured party in writing before the debtor receives possession of the inventory. This notification requirement is found in Louisiana Revised Statute 10:9-324. In this scenario, Bayou Bank has a perfected security interest in all of Delta Corp’s inventory, including after-acquired inventory. Crescent Finance advances funds to Delta Corp to purchase new inventory, thus acquiring a PMSI in that inventory. Crescent Finance files a financing statement but fails to provide the required written notice to Bayou Bank before Delta Corp receives the new inventory. Consequently, Crescent Finance’s PMSI in the new inventory is subordinate to Bayou Bank’s prior perfected security interest. The notification requirement is a critical step for PMSI holders in inventory to gain superpriority. Without it, their interest is subject to prior perfected security interests in after-acquired inventory.

Under Louisiana Revised Statute 10:9-310, perfection by filing is generally required for security interests in most types of collateral. However, Article 9 of the Uniform Commercial Code, as adopted in Louisiana, provides specific exceptions for certain collateral where possession or control is the exclusive method of perfection. For example, a security interest in deposit accounts, letter-of-credit rights, and certificated securities can only be perfected by control. Similarly, for investment property, perfection is achieved through control. Negotiable documents and goods covered by a document of title that are to be delivered under the document are perfected by possession of the document. The Louisiana approach aligns with the general UCC principles but emphasizes the specific perfection methods for these types of assets to ensure clarity and enforceability of security interests, particularly in complex financial transactions. Failure to use the correct perfection method, such as attempting to file a financing statement for a deposit account, will render the security interest unperfected against most third parties.

The core issue here revolves around the perfection of a security interest in a deposit account. Under Louisiana Revised Statute 10:9-312(b), a security interest in a deposit account can only be perfected by control. Control is defined in Louisiana Revised Statute 10:9-104. For a bank, control is established when the bank is the bank with which the deposit account is maintained. For a buyer of accounts, chattel paper, payment intangibles, or promissory notes, control can be obtained by becoming the bank’s customer with respect to the deposit account. Alternatively, control is achieved through a “control agreement” between the debtor, the secured party, and the bank, where the bank agrees to comply with the secured party’s instructions regarding the deposit account without further consent from the debtor. In this scenario, Amelie Bank has a security interest in the deposit account held by Bayou Boats LLC. However, Amelie Bank has not obtained control as defined by Article 9. Bayou Boats LLC is the debtor and the customer of Amelie Bank. For Amelie Bank to perfect its security interest in the deposit account, it would need to either become the customer of the deposit account (which it already is, but this is usually in the context of a third-party bank holding the account) or enter into a control agreement with Bayou Boats LLC and the depositary bank (which is Amelie Bank itself). Since Amelie Bank has not taken any action to establish control as required by Louisiana Revised Statute 10:9-314(a), its security interest remains unperfected. Therefore, Amelie Bank’s unperfected security interest is subordinate to the perfected security interest of Crescent Capital Corp. Crescent Capital Corp., by filing its financing statement and taking possession of the collateral (assuming the deposit account is the primary collateral), has a perfected security interest, which will generally take priority over an unperfected one. The question asks about the perfection status of Amelie Bank’s security interest, which is unperfected due to the lack of control over the deposit account.

The core issue here is the perfection of a security interest in collateral that is subject to a “control agreement” under Louisiana’s version of Article 9. Specifically, when a debtor pledges a deposit account as collateral, the secured party’s perfection is typically achieved through “control” of that deposit account, as defined in La. R.S. 10:9-104. Control is established when the secured party becomes the bank’s customer with respect to the deposit account, or when the bank agrees to comply with the secured party’s instructions concerning the account without further consent from the debtor. La. R.S. 10:9-104(a)(1) and (a)(2). If a security agreement grants a security interest in a deposit account, and the secured party has obtained control over that deposit account, then the security interest in the deposit account is automatically perfected. La. R.S. 10:9-314(a). This perfection continues as long as the secured party maintains control. La. R.S. 10:9-314(c). Therefore, if Bayou Bank had control over the deposit account held at Crescent City Bank, its security interest in that account would be perfected automatically upon obtaining control, irrespective of whether a separate UCC-1 financing statement was filed for the deposit account itself. Filing a UCC-1 is generally required for perfection in many types of collateral, but deposit accounts are an exception where control is the exclusive method of perfection. La. R.S. 10:9-309(3) specifically states that a security interest in deposit accounts as original collateral is perfected by control.