Article 9 Scope Flashcards
What does Article 9 apply to?
Article 9 applies to consensual security interests in personalty or fixtures.
Personalty is goods! Applies only to voluntary or consensual collateralizations - not to statutory or mechanics liens.
Who is the debtor?
The entity or person who ows the money.
Who is the secured party or secured creditor?
An entity who lends the money.
What is the security agreement?
Contract or record
What is the security interest?
The right creditor has in debtor’s personalty or fixtures.
What is collateral? What could collateral be?
What test is used to classify tangible collateral?
The personalty or fixtures creditor can look to for satisfaction.
The collateral could be:
- Tangible collateral or goods:
a. consumer goods: those items used for personal or familial purposes.
b. equipment: items used in business.
c. inventory: goods held for sale or lease
d. farm products
e. fixtures: items annexed to realty.
OR
- Intangibles or semi-intangibles, such as: patents, trademarks, copryights (IP) OR stocks, bonds, mutual funds, including proceeds from sale of collateral or account/right to payment, promissory notes, and drafts.
The key for purposes of classifying tangible collateral is the primary use in the hands of your debtor.