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12 Cards in this Set
- Front
- Back
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Unsecured Loan (or signature loan) |
A loan that is secured WITHOUT any collateral -May use a debt collector but NOT send someone to repossess property. |
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Judicial Lien |
May be used by a creditor who is successful in suit to acquire a LEVY EXECUTION to on the def.-borrower's assets. The sheriff executes this and my sell the borrower's assets to make payment on/of the loan through a sheriff's sale. |
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fraudulent tranfser |
the hiding of assets with friends or relatives to avoid payment of a debt |
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surety |
one who at the request of another, and for the purpose of securing for him a benefit, becomes responsible for the performance by the later or some act in favor of a third person--pays or acts in the event the principal fails to pay. |
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guarantor |
a person who becomes secondarily liable for another's debt or performance (in contrast to a STRICT SURETY, who is primarly liable with the principal debtor) |
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What is the bare minimum to create a valid security agreement (under UCC 9-203)? |
1. Sufficient description 2. of the Collateral 3. Language that operates to create a 4. Security Interest |
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How is collateral classified? |
By how the debtor USES it |
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Security Agreement |
An agreement that creates or provides for a security interest (69). |
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What are the four points of a checklist for attachment of a security interest? (70) |
1. Identify the debtor. 2. Inspect the collateral. 3. Run a UCC Search. 4. Draft and sign a security agreement. |
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Article 9 Application: To what FOUR areas does Art. 9 apply? (71) |
1. Sales of Accounts 2. Chattel Paper 3. Payment Intangibles 4. Promissory Notes |
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What is a floating lien? |
A security agreement in collateral that the the debtor does NOT CURRENTLY OWN--9-204 (a). It attaches when the seller contracts. Note: It should be specifically mentioned in the agreement/contract. |
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What is a future advance, and to what should one pay special attention? (76) |
A future advance is is when the debtor's FUTURE debt--after the security agreement's formation--becomes a part of the original debt and the collateral is then held against that as well. NOTE: This must be specified in the security agreement. |
