Secured Transactions Mee General Defintions

Front 1

Define secured transaction

Back 1

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

Front 2

Define Debtor, and secured party

Back 2

Debtor: The person who owes payment or performance of the obligation secured.

Secured party: A lender, seller, or other person in whose favor there is a security interest.

Front 3

Define security agreement

Back 3

A contract between the debtor and the secured party that creates the security interest.

Front 4

Define security interest

Back 4

An interest in personal property or fixtures which secures payment or performance of an obligation. It is a contingent property interest in the debtor's collateral that springs to life upon default giving the creditor rights in the debtor's collateral.

Front 5

Define collateral

Back 5

The property subject to a security interest.

Front 6

Define the Two Purchase Money Security Interest types (PMSI)

Back 6

(1) Secured party sells collateral on credit and retains a security interest in the item sold; or
(2) a loan to a debtor that enables the debtor to buy specific collateral, the debtor actually purchases the specific collateral, and the creditor takes a security interest in the specific collateral (i.e., enabling loan).

Front 7

What is an after-acquired property clause?

Back 7

A security interest in property the debtor will obtain int he future.

Front 8

What is a future advance clause?

Back 8

A clause that allows the debtor to obtain a loan in the future and in which the secure party secured these future advances in the present security agreement.