1.  How does the process for creating and perfecting a security interest differ in the following cases?

a.  Pushaw buys a car from Legend Mazda and grants a security interest to Bank of America to secure his obligation to repay the loan he obtained to pay for the car.  [§ R9-311, RSMo. § 301.600 et seq.]

b.  Legend Mazda purchases 230 1999 model cars from Mazda Motors of America, Inc. and grants a security interest to Mazda Motor Credit in order to secure its obligation to repay the credit extended to Legend in order to acquire these cars.  [§ R9-311]

3.  Consider problems 1 and 2 on pages 111-112.  How were these problems resolved under old Article 9 [§ 9-103(2)]?  Would they be resolved any differently under revised Article 9?  [§ R9-316]

§ 301.600.  Liens and encumbrances, how perfected--effect of on vehicles and trailers brought into state

    1.   Unless excepted by section 301.650, a lien or encumbrance on a motor vehicle or trailer, as defined by section 301.010, is not valid against subsequent transferees or lienholders of the motor vehicle or trailer who took without knowledge of the lien or encumbrance unless the lien or encumbrance is perfected as provided in sections 301.600 to 301.660.
    2.  A lien or encumbrance on a motor vehicle or trailer is perfected by the delivery to the director of revenue of the existing certificate of ownership, if any, an application for a certificate of ownership containing the name and address of the lienholder and the date of his security agreement, and the required certificate of ownership fee.  It is perfected as of the time of its creation if the delivery of the aforesaid to the director of revenue is completed within thirty days thereafter, otherwise as of the time of the delivery.  Liens may secure future advances.  The future advances may be evidenced by one or more notes or other documents evidencing indebtedness and shall not be required to be executed or delivered prior to the date of the lien securing them.  The fact that a lien may secure future advances shall be clearly stated on the security agreement and noted as "subject to future advances" in the second lienholder's portion of the title application and noted on the certificate of ownership if the motor vehicle or trailer is subject to only one lien.
     3.  If a motor vehicle or trailer is subject to a lien or encumbrance when brought into this state, the validity and effect of the lien or encumbrance is determined by the law of the jurisdiction where the motor vehicle or trailer was when the lien or encumbrance attached, subject to the following:
        (1)  If the parties understood at the time the lien or encumbrance attached that the motor vehicle or trailer would be kept in this state and it was brought into this state within thirty days thereafter for purposes other than transportation through this state, the validity and effect of the lien or encumbrance in this state is determined by the law of this state;
        (2)  If the lien or encumbrance was perfected under the law of the jurisdiction where the motor vehicle or trailer was when the lien or encumbrance attached, the following rules apply:
            (a)  If the name of the lienholder is shown on an existing certificate of title or ownership issued by that jurisdiction, his lien or encumbrance continues perfected in this state;
            (b)  If the name of the lienholder is not shown on an existing certificate of title or ownership issued by that jurisdiction, the lien or encumbrance continues perfected in this state three months after a first certificate of ownership of the motor vehicle or trailer is issued in this state, and also thereafter if, within the three month period, it is perfected in this state. The lien or encumbrance may also be perfected in this state after the expiration of the three month period;  in that case perfection dates from the time of perfection in this state;
        (3) If the lien or encumbrance was not perfected under the law of the jurisdiction where the motor vehicle or trailer was when the lien or encumbrance attached, it may be perfected in this state;  in that case perfection dates from the time of perfection in this state;
        (4) A lien or encumbrance may be perfected under paragraph (b) of subdivision (2) or subdivision (3) of this subsection either as provided in subsection 2 or by the lienholder delivering to the director of revenue a notice of lien or encumbrance in the form the director of revenue prescribes and the required fee.

§ 301.610.  Certificate of ownership, delivery to whom, when

 A certificate of ownership of a motor vehicle or trailer when issued by the director of revenue shall be mailed or otherwise delivered to the first lienholder named in such certificate;  and if no lienholder is shown, then the certificate of ownership shall be mailed to the owner shown on the face of the title of such motor vehicle or trailer.

§ 301.620.  Duties of parties upon creation of lien or encumbrance

 If an owner creates a lien or encumbrance on a motor vehicle or trailer:
        (1)  The owner shall immediately execute the application, in the space provided therefor on the certificate of ownership or on a separate form the director of revenue prescribes, to name the lienholder on the certificate, showing the name and address of the lienholder and the date of his security agreement, and cause the certificate, application and the required fee to be delivered to the lienholder;
        (2)  The lienholder shall immediately cause the certificate, application and the required fee to be mailed or delivered to the director of revenue;
        (3)  Upon request of the owner or subordinate lienholder, a lienholder in possession of the certificate of ownership shall either mail or deliver the certificate to the subordinate lienholder for delivery to the director of revenue or, upon receipt from the subordinate lienholder of the owner's application, the certificate and the required fee, mail or deliver them to the director of revenue with the certificate.  The delivery of the certificate does not affect the rights of the first lienholder under his security agreement;
        (4)  Upon receipt of the certificate, application and the required fee, the director of revenue shall issue a new certificate of ownership containing the name and address of the new lienholder, and shall mail the certificate as prescribed in section 301.610.

§ 301.630.  Lien or encumbrance, assignments, procedure, effect of--perfection of assignment, how, fee

    1.  A lienholder may assign, absolutely or otherwise, his lien or encumbrance in the motor vehicle or trailer to a person other than the owner without affecting the interest of the owner or the validity or effect of the lien or encumbrance, but any person without notice of the assignment is protected in dealing with the lienholder as the holder of the lien or encumbrance and the lienholder remains liable for any obligations as lienholder until the assignee is named as lienholder on the certificate.
    2.  The assignee may, but need not to perfect the assignment, have the certificate of ownership endorsed or issued with the assignee named as lienholder, upon delivering to the director of revenue the certificate and an assignment by the lienholder named in the certificate in the form the director of revenue prescribes the application and the required fee.

§ 301.640.  Release of lienholders' rights upon satisfaction of lien or encumbrance, procedure--issuance of new certificate of ownership--certain liens deemed satisfied, when

    1.  Upon the satisfaction of a lien or encumbrance of a motor vehicle or trailer for which the certificate of ownership is in possession of the lienholder, he shall, within ten days after demand and, in any event, within thirty days, release his lien or encumbrance on the certificate, and mail or deliver the certificate to the next lienholder named therein, or, if none, to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate.  The owner may cause the certificate to be mailed or delivered to the director of revenue, who shall issue a new certificate of ownership upon application and payment of the required fee.
    2.  Upon the satisfaction of a lien or encumbrance in a motor vehicle or trailer for which a certificate is in possession of a prior lienholder, the lienholder whose lien or encumbrance is satisfied shall within ten days after demand and, in any event, within thirty days, release the lien or encumbrance on the certificate and deliver the certificate to the owner or any person who delivers to the lienholder an authorization from the owner to receive it.  The lienholder in possession of the certificate shall at the request of the owner and upon surrender of the certificate of title by the owner and receipt of the required fee, either mail or deliver the certificate of ownership to the director of revenue, or deliver the certificate to the owner, or the person authorized by him, for delivery to the director of revenue, who shall issue a new certificate.
    3.  If the purchase price of a motor vehicle or trailer did not exceed six thousand dollars at the time of purchase, a lien or encumbrance which was not perfected by a motor vehicle financing corporation whose net worth exceeds one hundred million dollars, or a depository institution, shall be considered satisfied within six years from the date the lien or encumbrance was originally perfected unless a new lien or encumbrance has been perfected as provided in section 301.600.  This subsection does not apply to motor vehicles or trailers for which the certificate of ownership has recorded in the second lienholder portion the words "subject to future advances."

§ 301.650.  Scope of law--method of perfecting liens or encumbrances is exclusive

    1.  Sections 301.600 to 301.660 do not apply to or affect:
        (1)  A lien given by statute or rule of law to a supplier of services or materials for the motor vehicle or trailer;
        (2)  A lien given by statute to the United States, this state or any political subdivision of this state;
        (3)  A lien or encumbrance on a motor vehicle or trailer created by a manufacturer or dealer who holds the motor vehicle or trailer for sale;
        (4)  A lien or encumbrance on any manufactured home, as defined in section 700.010, RSMo;
        (5)  A lien for delinquent child support or spousal support given by section 454.516, RSMo.
    2.  The method provided in sections 301.600 to 301.660 of perfecting and giving notice of liens or encumbrances subject to sections 301.600 to 301.660 is exclusive.