the interest in the collateral which secures payment or performance of an obligation

1. consumer goods
2. equipment
3. farm products
4. inventory
5. fixtures
6. accessions (same as fixtures but attached to goods)

1. chattel paper
2. instruments
3. accounts
4. deposit accounts
5. agricultural lien
6. commercial tort claim
7. general intangibles

• is a good if it is so embedded in a computer that it is considered part of it
• if it is independent from the computer, then it is a general intangible

1. unless collateral is in the possession of the secured party, must be written or authenticated security agreement describing collateral subject to the security interest signed and authenticated by debtor (revised artical 9: "super-generic discriptions such as 'all debtors assets' aren't sufficient")
2. secured party must give the debtor something of value
3. debtor must have rights in collateral

1. attachments
2. possession and control
3. filing

1. a purchase money security interest in consumer goods
2. security interest created by assignment of a beneficial interest in a decedent's estate
3. sale of payment intangibles
4. sale of promissory notes

1. created when the interest is taken or retained by the seller of the collateral to secure the price, or
2. when the interest is taken by a person who advanced or gave value to the debtor to enable the debtor to acquire rights in or the use of collateral if the value is so used

1. letter of credit rights- perfection by control unless it is a supporting obligation
2. electronic chattel paper- perfection is by filing or control unless it is a supporting obligation
3. deposit accounts- used as original collateral can be perfected only by control
4. money- can be perfected by possession
5. investment property- may be perfected by filing or control, but control takes priority over filing

1. fictures, timber to be cut, and collateral to be extracted, filing is in the jurisdiction where the collateral is located and the filing must include a description of the realty
2. possessory security interests: perfection and priority is in jurisdiction where collateral is located
3. certified securities: perfection is where the security certificate is located but for uncertified securities, it is the location of the issuer

1. must state names of debtor and secured party
2. must contain a descirption of the collateral subject to the security interest (can be genric descirption)

• financing statement- can be filed before a security agreement is made or a security interest attaches, but debtor authorization is final
• security interest- perfected upon communication of a financing statement and tender of filing fee or acceptance of the financing statement by the filing officer

1. proper filing fee is not tendered,
2. name of the debtor is not provided,
3. record filing is communicated in an unauthorized medium, or
4. where required, there isn't sufficient descirption of the realty

1. release
2. assignment
3. amendment
4. information request

• any person can request of the filing officer "information" on previously filed security interests of a specific debtor
• furnishable for a fee 

• takes free of a secured party's interest even if it is perfected and buyer knows of the security interest at time of sale
• exception: if buyer knows that the seller as no authority to pass title without secured party's consent

of consumer goods will prevail over a previously perfected secured party by attachment if the buyer can prove that he...

1. gave vaule to seller-debtor,
2. didnt know of secured party's security interest,
3. bought for personal use, and
4. bought before the secured party perfects by filing

buyer of chattel paper from a retailer will prevail in priority over a previously perfected secured party (even if perfected by filing) if the buyer...

1. gave the debtor value,
2. took possession in the ordinary course of the buyer's business, and
3. took without actual knowledge of the secured party's security interest

general rule: first in time of perfection is first in priority right

exceptions: inventory, collateral other than inventory, software

a purchase money security interest in the same debtor's inventory will have priority over a previously perfected nonpurchase money security interest providing these two events take place before debtor takes possession of the collateral..

1. purchase money security interest secured party perfects, and
2. the purchase money security interest secured party sends and the nonpurchase money security interest receives, written notice of the purchase money security interest

1. after-acquired collateral clauses
2. future advances
3. proceeds
4. commingled goods
5. debtor moved into new jurisdiction

• security interest continues with proceeds as well
• if proceeds are perfected by filing, secured party also has priority to proceeds
• if proceeds aren't perfected, priority only extends for 21 days after the debtor s receipt unless the secured party does perfect within this period

• perfected secured party from first state has priority for 4 months from the moving date
• if transfer of the collateral to another debtor in new state, priority period is a year
• if original perfected secured party perfects in new state within time limit, they can continue to have priority

1. must used reasonable care
2. can't use collateral
3. entitled to any increase in value (except cash)
4. must keep collateral identifiable unless it is fungible

1. debtor has a right, in a record authenticated by the debtor, to indicate what the debtor believes the unpaid debt amount to be and/or a listing of the collateral subject to the security interest for secured party's approval or correction
2. secured party must comply within 14 days upon receipt or he will be liable for any loss by the debtor plus $500
3. one request allowed every 6 months for free ($25 aftert that)

1. debtor is entitled to have a termination statement filed 
2. if collateral is consumer goods, the secured party must file the termination statement within one month of final payment or within 20 days of receipt of authenticated demand (whichever is easier)
3. if collateral is something else, secured party upon authenticated demand by the debtor must send to the debtor a termination statement or file within 20 days
4. failue of secured party to comply with filing or sending of termination statement as requested allows debtor to recover $500 and any loss suffered

1. in full or partial satisfaction of the debt (with debtor's consent)
2. secured party can keep if it sends notice to debtor and junior security interests who gave notice of their claim or have filed a statutory security interest AND it hasn't received notification or objection from any of the above parties within 20 days after notice was sent out
3. can't keep (must sell) if the collateral is consumer goods and >= 60% of debt or price has been paid

must be done in a reasonable manner which means..

1. can be public or private,
2. must give debtor notice of time and place,
3. must be a reasonable time and place,

secured party can disclaim disposal warranties and can buy if public sale

1. expenses incurred by secured party in repossession, keeping, and resale
2. balance of debt to secured party
3. junior lien holders who have made written demands
4. debtor

• prohibits secured party from repossession if debtor has since enlisted or is called to duty (extends 6 months after no longer active)
• doesn't apply if debtor is active in military service at the time the security interest was created