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16 Cards in this Set
- Front
- Back
agreement that creates or provides for a security interest.
Basically, just a contract. |
security agreement
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personal property or fixtures obtained by a creditor secures payment or performance of an obligation.
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security interest
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party who holds a security interest in the collateral of the debtor.
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secured party
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the person who owes payment or has an obligation to perform underthe security agreement.
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debtor
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with secured transactions, tangible personal property serves BLANK (property securing the promise to repay). This includes:
Consumer goods. Equipment. Inventory |
collateral
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A note with security agreement built into it.
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Chattel Paper
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Attachment
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-An agreement in which debtor grants creditor a security interest in collateral
-The debtor must have rights in the collateral -The creditor must give value to the debtor |
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A creditor gets protection against other creditors or purchasers of the collateral
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perfecting the security interest
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A security interest is not legally enforceable between the creditor and debtor until it becomes BLANK to one or more particular items of debtor’s property.
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attached
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3 ways perfecting can be done:
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By filing public notice (financing statement)with the Secretary of State;
By the creditor taking possession or control of the collateral (pledge); or Automatic perfection in certain transactions, such as a purchase money security interest. |
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Financing Statement with the Secretary of State (see p. 591).
UCC 9-501 requires |
Name(s) of the Debtor
Name of the Secured Party A Statement indicating or describing the collateral covered by the financing statement. |
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certain collateral as security for the debt and transfer the collateral into the creditor's possession
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pedge
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When a seller retains a security interest until goods are paid for or when money is loaned to acquire goods and the lender takes a security interest in the goods
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purchase money security interest (PMSI)
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PMSIs in non-consumer goods are not automatically perfected.
Two common types of non-consumer goods: |
Equipment used in a trade or business;
Inventory of the business. |
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In addition to property actually in the possession of the debtor, a security agreement can continue to cover new collateral or proceeds of collateral that has been disposed of
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floating liens
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3 floating liens
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Proceeds
Automatically covered as of the time the security agreement attaches. After-acquired Property A security agreement may be drafted to grant a creditor a security interest in debtor’s after-acquired property. Future Advances Security agreements can cover extensions of credit if specified in a security agreement. |