2. Creation of an Enforceable Security Interest Flashcards

1
Q

What is required for a security to interest to be enforceable?

A

It must attach

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2
Q

What are the three requirements for a security interest to attach?

A
  1. Value
  2. Contract
  3. Rights
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3
Q

Attachment

What is the value requirement?

A

CR must pay money or extend some other value

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4
Q

Attachment

What is the contract requirement?

A

The secured transaction must be evidenced in a contract

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5
Q

Attachment

What are the two requirements for a contract?

A
  1. Signed by DR
  2. Reasonably ID collateral
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6
Q

Attachment

In what one instance will a contract not be required?

A

CR has already taken possession

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7
Q

Attachment

What is the rights requirement?

A

DR must have rights in the collateral

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8
Q

Attachment

What is the one instance in which an after-acquired collateral clause will not be allowed?

A

DR is a consumer

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