Term
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Definition
| A present, but limited and conditional property interest in the asset of another which secures the performance of some obligation. |
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Term
| What is a secured transaction? |
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Definition
| Whenever a creditor has more than one avenue of collection. |
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Term
| Five Types of Secured Transactions |
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Definition
| Mortgages, Article 9 Security, Suretyship, Judicial Lien, Statutory Lien |
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Term
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Definition
| Delivery with intent to secure some personalty, chattel or negotiable instrument. |
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Term
| What was the evil under attack in Benedict v Ratner? |
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Definition
| The appearance of apparent, but false wealth. The debtor was left in complete dominion and control over the collateral in which the secured party had taken a security interest. |
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Term
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Definition
| The common law is preserved except to the extent that it is displaced by the UCC. |
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Term
| How do you perfect an intangible such as accounts receivable? |
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Definition
| File a financing statement. |
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Term
| The creation of a security interest in real estate is expressly outside the scope of Article 9, except for the creation of an interest in ________. |
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Definition
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Term
| A security agreement requires what? |
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Definition
1) The signature of the debtor/collateral owner
2) Description of the collateral |
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Term
| If at the end of the lease period the lessee becomes the owner of the property for little or no consideration what has been created? |
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Definition
A secured transaction & sale on credit disguised as a lease.
(Economic Reality Test) |
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Term
| What is an example of a true consignment? |
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Definition
The owner of the goods (consignor) gives the goods to a selling agent (consignee). The consignee has the right to sell the goods, but the consignor retains ownership. The consignee returns property that remains unsold at the end of the consignment.
True Consignment is a bailment coupled with the power of sale. |
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Term
| When is the classification of collateral determined? |
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Definition
| At the time of the creation of the security interest. |
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Term
| The financing statement creates property rights between whom? |
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Definition
| The creditor and the rest of the world. |
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Term
| If the contract contains a clause that permits the lessee to terminate the lease at any time and return the leased goods what has been created? |
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Definition
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Term
| In General Electric Capital Commercial Automotive Finance, Inc v Spartan Motors, Ltd. the court looked to ___________ and ____________ in making their decision. |
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Definition
1) Course of Dealing
2) Usage of Trade |
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Term
| Chattel paper means a record or records that evidence both _________ and ____________. |
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Definition
1) A monetary obligation; and
2) A security interest in specific goods. |
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Term
| What is the difference between a bona fide purchaser and a buyer in the ordinary course of business? |
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Definition
A bona fide purchaser must give value and act in good faith without knowledge of latent interests.
A buyer in the ordinary course of business is a buyer who buys from a seller who deals in goods of that kind. An inquiry into the buyer's knowledge is not required. |
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Term
| Perfection of security interests in automobiles is accomplished by ________________________. |
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Definition
| Notation on the face of the certificate of title to the vehicle. |
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Term
| Temporary perfection of 20 days does not protect you against _________________, but does protect you against ______________________. |
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Definition
1) Holder in due course;
2) Trustee in bankruptcy |
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Term
Classify the following collateral:
Credit Card receipts |
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Definition
| Accounts: Accounts Receivable |
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Term
Classify the Collateral:
Milk in the hand of the farmer |
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Definition
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Term
Classify the collateral:
Milk in the hand of the grocery store |
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Definition
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Term
Classify the collateral:
Milk in the hands of the grocery store's customer who is buying for consumption. |
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Definition
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Term
Classify the collateral:
A certificate of deposit issue by a bank. |
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Definition
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Term
Classify the collateral:
An airbill issued by an airline as a receipt for frozen shrimp shipped by air. |
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Definition
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Term
Classify the collateral:
The receipt given to a farmer by a silo operator when the farmer stored grain there. |
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Definition
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Term
Classify the Collateral:
Rare coins bought by a hobbyist for addition to his collection |
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Definition
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Term
Classify the Collateral:
A tax refund |
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Definition
General Intangible
If it is in check- form then it is a negotiable instrument. |
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Term
Classify the collateral:
A debenture bond issued by a corporation. |
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Definition
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Term
Classify the Collateral:
A right to 100 shares of stock recorded on the books of the debtor's stockbroker. |
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Definition
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Term
Classify the Collateral:
The checking account you have at your bank. |
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Definition
Deposit Account.
Not within the scope of Article 9. |
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Term
Classify the Collateral:
A computer program not part of a computer and sold separately. |
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Definition
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Term
Classify the Collateral:
The monthly rental obligations owed to a landlord who wants to use these obligations as collateral for a loan. |
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Definition
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