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15 Cards in this Set
- Front
- Back
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Attachment |
When the secure party's security interest becomes enforceable against the debtor. |
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Collateral |
Property that is subject to a security interest. It is used to help assure a secured party that the debt will be repaid. |
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Consumer Goods |
A type of collateral that was purchased for personal use. |
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Debtor |
The party in a secured transaction who owes an obligation to the secured party. |
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Default |
When the debtor fails to make a scheduled payment to a secured party. When this occurs it allows the secured party to take action against the collateral. |
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Equipment |
A type of collateral that was purchased for a business use. |
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Financing Statement |
A document filed with the state government that perfects security interest in collateral. |
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Floating Lien |
A security interest in the future inventory or equipment that the debtor acquires. |
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Inventory |
A type of collateral that was purchased for resale. |
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Perfection |
When the secured party's security interest is enforceable against third parties. Perfection cannot occur before attachment. |
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Pledge |
When the secured party perfects by taking possession of the collateral. |
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Purchase Money Security Interest (PMSI) |
Arises when the secured party extends credit to the debtor to purchase a specific good. The secured party takes a security interest in that specific good. |
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Secured Party |
A creditor who receives a promise from a debtor to repay a debt and the debtor also provides collateral to assure repayment f the debt. |
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Security Agreement |
The contract between the debtor and the secured part, which creates a security interest in the collateral |
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Security Interest |
The interest in the collateral that helps to assure repayment of the debt. |
