Secured Transactions

Front 1

Secured Transaction

Back 1

A transaction intended to create a security interest in personal property or fixtures

Front 2

Security Interest

Back 2

An interest in personal property of fixture which secures payment or performance of an obligation. A contingent property interest in debtor's collateral that debtor grants to the creditor. When default occrs, property interest springs to life & creditor has rights in the debtor's collateral.

Front 3

Purchase Money Security Interest (PMSI)

Back 3

1. Secured Party sells debtor collateral on credit and retains a security interest in the item sold

2. enabling loan - loan to debtor to buy specific collateral, creditor takes security interest in that collateral

Front 4

Types of Collateral

Back 4

Goods (tangible personal property)

1. Consumer Goods: used or bought primarily for family,household, or personal purpose

(2) Equipment: used or bought primarily for business

(3) Farm Products: used or produced in farm operations
(4) Inventory: held for sale or lease or to be furnished under service contracts (materials used or consumed in a business)

Front 5

What are the 8 Article 9 buckets? (semi-intangible & intangible property)

Back 5

1. Instruments: negotiable instruments (financial intstruments)
2. Documents kept in regular course of business (warehouse receipt)
Investement proeprty: stocks, bonds, mutual funds, & brokerage accounts
Accoutns: debtor has right to payment (accounts receivable) not evidenced by instrument or chattel paper
6. Deposit Accounts: only non-consumer deposit accounts
7. Commercial tort claims: a claim arising in tort with respect to which claimant is an organization
8. General Intangibles: "catch-all"

Front 6

Article 9 applies to what?

Back 6

1. any trnsaction that creates a security interest in personal poperty or fixtures by contract
2. Agricultural liens
3. sale of accounts, chattel paper, payment intangibles, or promissory notes
4. certain consignments
5. secured sale disguised as a lease

Front 7

What are the three elements of attachment?

Back 7

1. Security Agreement
2. Value must be given
3. Debtor must have rights in collateral