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| Transactions where a debtor pledges personal property or fixtures to a creditor as a security for a loan or another obligation |
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| Includes all property except real estate and the items that are attached to it |
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| is a lien on personal property or fixtures, which secures payment or performance of an obligation, allowing repossession and sale of the collateral if there is a default on the obligation |
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| is an interest in property which typically gives a creditor the right to sell propertyon default (mortgages, security interest, and some court judgements) |
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| are items of personal property permanently attached to real estate |
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| Transfers a security interest in personal property and creates a secured transaction |
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| is the personal property or fixtures subject to a security interest |
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| is the creditor who is the holder of the security interest |
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| is the process which causes a security interest to be enforceable against a certain piece of collateral |
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| is a process which fixes the secured party's level of priority to the collateral against others who also have a lien |
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| is a written notice of a security interest filed with a government office. This notice perfects the security interest to fix its priority as opposed to others who will take a later interest in the property |
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| Defined as things that are tangible and movable, such as furniture or business equipment but also includes fixtures under article 9 |
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| are documents which in themselves evidence a legal right, such as negotiable instruments |
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| are items of personal property with no aspect of physical existence, such as accounts receivable or the goodwill of a business |
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Term
| Article 9 of the UCC does not apply to... |
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Definition
| real estate or to the perfection of security interests in motor vehicles (Perfection of motor vehicles is accomplished through the Department of Motor Vehicles' process of placing the secured party's name on the vehicle title, according to a seperate statute) |
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| Attachment of security interest in, and repossesion of, motor vehicles is governed under article 9... True or False |
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Definition
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| 3 Requirements for attachment of a security interest |
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Definition
1. There must either be a written security agreement or the secured party must take possession of the collateral
2. The secured party must give value
3. The debtor must have rights in the collateral |
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Term
| 3 ways to perfect a security interest |
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Definition
1. by taking possession of the collateral
2. by attachment of a security interest if it is a PMSI in consumer goods. (PMSI = purchase money security interest)
3. filing a financing statement, a written notice of the security interest |
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Term
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Definition
| are security interestwhich switch from one piece of collateral to another or which use the same collateral to secure more than one advance of money by a lender |
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| 3 types of floating liens: |
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Definition
1. Proceeds
2. After acquired property
3. Future Advances |
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Term
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Definition
| consist of whatever is received in exchange for the collateral. For example, if a soybean farmer exchanges a quantity of soybeans for a quantity of animal feed, the animal feed would be ________. (105) |
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| is a property of a similar type to the collateral, but which is purchased by the debtor after the attachment of the original security interest. (105) |
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| are loans to be made by a secured party in the future, that is, after the original security agrement is signed. (105) |
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Term
| Obtaining all 3 types of floating liens can be done by inserting the following language in a security agreement: |
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Definition
| "This security interest covers proceeds, after acquired property and future advances" |
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| List of priority for security interest from highest to lowest (105) |
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Definition
1. a buyer in the ordinary course of business takes purchased items free of security interest in the seller's inventory.
2. a purchase money security interest perfected within 20 days of attachment
3. a secondhand purchaser of consumer goods will take title free of security interest perfected by attachment
4. priority goes to the first secured party to perfect its security interest or to become a lien creditor
5. Priority goes to the first secured party whose security interest attaches to the collateral if no secured party has perfected a security interest |
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Term
| Ways the creditor can collect on a failed payment of the debtor |
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Definition
1. Repossession
2. Repossession Sale
3. Retain collateral
4.Ignore the securtiy interest and sue on the promissory note |
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Term
| After reposession of sales, the law fixes 4 priorities in the following order: |
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Definition
1. the expenses of the repossession sale are paid, including attorney's fees and many expenses of the secured party incurred in repossessing, holding and preparing the collateral for sale
2. Repayment of the first lienholder
3. Inferior lienholders who have notified the secured party in order of the priorities listed above
4. The debtor is entitled to any surplus from the foreclosure sale or is responsible for any deficiency to any secured party who is not fully paid |
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