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42 Cards in this Set
- Front
- Back
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secured transaction
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any transaction in which the payment of debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has a legal interest
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secured party
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a lender, seller, or any other person in whose favor there is a security interest, including a person to whom accounts or chattel paper has been sold
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debtor
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under article 9 of the ucc, a debtor is any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in in the collateral
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security interest
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any interest in personal property or fixtures that secures payment or performance of an obligation
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security agreement
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an agreement that creates or provides for a security interest in between the debtor and a secured party
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collateral
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under article 9 of the ucc, the property subject to a security interest, including accounts and chattel paper that have been sold
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financing statement
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a document prepared by a secured creditor, and filed with the appropriate state or local official, to give notice to the public that the creditor has a security interest in the collateral belonging to the debtor named in the statement
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default
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the failure to observe a promise or discharge an obligation. The term is commonly used to meant eh failure to pay a debt when it is due
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attachment
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in a secured transaction, the process by which a secured creditor's interest "attaches" to the property of another (collateral) and the creditor's security interest becomes enforceable
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perfection
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the legal process by which secured parties protect themselves against the claims of third parties who may whish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate government official
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pledge
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a common law security device (retained in article 9 of the ucc) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.
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purchase-money security interest (PMSI)
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a security interest that arises when a seller or lender extends credit for part or all of the purchase price of good purchased by a buyer
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continuation statement
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a statement that, if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years. The perfection of a security interst can be continued in the same manner indefinitely
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proceeds
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under article 9 of the ucc, whatever is received when the collateral is sold or otherwise disposed of, such as by exchange
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after-acquired property
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property that is acquired by the debtor after the execution of a security agreement
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floating lien
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a security interst in proceeds, after-acquired property, or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character, classification, or location
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execution
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an action to carry into effect the directions in a court decree or judgment
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levy
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the obtaining of money by legal process through the seizure and sale of nonsecured proprty, usually done after a writ of execution has been issued
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efficiency judgment
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a judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold
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mechanic's lien
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a statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building
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artisan's lien
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a possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed
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innkeeper's lien
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a possessory lien placed on the luggage of hotel guests for hotel charges that remain unpaid
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writ of attachment
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a court's order, issued prior to a trial to collect a debt, directing the sheriff or other officer to seize nonexempt property of the debtor. If the creditor prevails at trial, the seized property can be sold to satisfy the judgment
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writ of execution
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a court's order, issued after a judgment has been entered against the debtor, directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment, accrued interest and cost of the sale; any surplus is paid to the debtor
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garnishment
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a legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer)
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mortgage
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under a mortgage agreement, the creditor who takes a security interest in the debtor's property
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mortgagor
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under a mortgage agreement, the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan
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suretyship
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an express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation
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surety
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a person, such as a cosigner on a note, who agrees to be primarily responsible for the debt of another
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guarantor
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a person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus, a guarantor's liability is secondary
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homestead exemption
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a law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from teh claims of unsecured creditors or trustees in bankruptcy
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discharge
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in bankruptcy proceedings, the extinction of the debtor's dischargeable debts
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petition in bankruptcy
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the document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately, sworn to under oath, and signed by the debtor
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consumer-debtor
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an individual whose debts are primarily consumer debts (debts for purchases made primarily for personal or household use)
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order for relief
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a court's grant of assisstance to a complainant. In bankruptcy proceedings, the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition
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automatic stay
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in bankruptcy proceedings, the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy
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estate in property
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in bankruptcy proceedings, all of the debtors interests in property currently held, wherever located, together with certain jointly owned property, property transferred in transactions voidable by the trustee, proceeds and profits from the property of the estate, and certain property interests in which the debtor becomes entitled within 180 days after filing for bankruptcy
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US trustee
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a government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform
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reaffirmation agreement
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an agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay, or reaffirm, a debt dischargeable in bankruptcy. To be enforceable, the agreement must be made before the debtor is granted a discharge
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workout
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an out-of-court agreement between a debtor and creditor's in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged
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debtor in possession (DIP)
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in chapter 11 bankruptcy proceedings, a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations
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cram-down provision
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a provision of the Bankruptcy Code that allows a court ot confirm a debtor's chapter 11 reorganization plan even though only one class of creditors has accepted it. To exercise the court's right under this provision, the court must demonstrate that the plan does not discriminate unfairly against any creditors and is fair and equitable
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