Secured Transactions

Front 1

Attachment

Back 1

Creates a security interest - links a debt to a particular piece of personal collateral; upon attachment, the interest becomes enforceable against the debtor's collateral. Requires

1) Value be given by the secured party (need not be new consideration, future advances count)
2) Debtor has rights in the collateral
3) There is a security agreement meeting one of the following requirements:
A) authenticated that describes the collateral
- Record, must be tangible; must be (functionally) signed
B) secured party has possession or control of the collateral pursuant to an oral or unauthenticated security agreement.

Front 2

Perfection

Back 2

Providing notice of a security interest to establish a claim superior to other parties who may wish to claimt he same collateral

Front 3

Priority

Back 3

Rules for resolving priority disputes between multiple claimants to the same collateral

Front 4

Farm products

Back 4

goods that are crops or livestock and include supplies that are used or produced in farming.

Front 5

Chattel paper

Back 5

One or more records that evidence both (i) a monetary obligation and (ii) a security interest in a specific goods or a lease of specific goods

Front 6

Document

Back 6

Document of title which confers on the holder ownership rights in the goods held by a bailee

(e.g. bill of lading or warehouse receipts)

Front 7

Instruments

Back 7

encompasses both negotiable and nonnegotiable instruments

Front 8

Investment property

Back 8

includes both certificated and uncertificated securities, as well as securities accounts
(e.g. stocks and bonds)

Front 9

Accounts

Back 9

the right to payment for goods sold, property licensed, or services rendered

Front 10

Enforcement

Back 10

Rights and duties of a secured party who enforces its interest in the collateral

Front 11

Collateral

Back 11

Property that is subject to a security interest

Front 12

Goods

Back 12

Anything movable, plus fixtures, standing timber, unborn animals, growing or unharvested crops, and manufactured homes.
Four mutually exclusive sub-categories:

- Consumer goods

- Farm products

- Inventory

- Equipment

Classification can change as it passes or principal use changes.

Front 13

Rights to Payment

Back 13

1) Instruments (e.g. promissory notes)

2) Chattel paper (e.g. landlord's rights)

3) Accounts (e.g. money to be paid)

4) Payment intangibles

Front 14

Deposit accounts

Back 14

E.g. savings, passbook, time, or demand account made with a bank

Front 15

Letter of credit

Back 15

Right to payment or performance under a letter of credit

Front 16

General intangibles

Back 16

Anything that doesn't fit; blueprints, copyrights, trademarks, and software

Front 17

Commercial tort claims

Back 17

NOT personal injury or death; e.g. fraud.

Front 18

After-acquired property

Back 18

Property acquired by the debtor after the security interest attaches; ONLY happens if after-acquired property clause.
Exception: inventory or accounts usually includes after-acquired property

Front 19

Accession/Commingled Goods/Proceeds

Back 19

Security interest continues in the accession;
Continues in the larger product/mass that results;

Attaches automatically to proceeds

Front 20

Purchase Money Security Interest

Back 20

Only if collateral is goods or software

1) Value given allows the debtor to acquire the goods or software, and

2) The goods or software acquired secure the loan

For non-consumer-goods transactions, partial PMSI are permitted.

Front 21

Perfection

Back 21

The process that stakes the secured party's claim, so that the secured party might have priority over a later claim.

1) Filing (financing statement)

2) Possession

3) Contral

4) Alternate Perfection Systems

5) Automatic perfection

Front 22

Filing

Back 22

Requirements for filing a financing statement:

1) Name of debtor

2) Name of secured party

3) Description of collateral

4) Additional requirements for real property-related collateral
- must indicate that a security agreement covers this type of collateral