Article 9 Scope Flashcards

1
Q

What does Article 9 apply to?

A

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.

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2
Q

Who is the debtor?

A

The entity or person who ows the money.

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3
Q

Who is the secured party or secured creditor?

A

An entity who lends the money.

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4
Q

What is the security agreement?

A

Contract or record

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5
Q

What is the security interest?

A

The right creditor has in debtor’s personalty or fixtures.

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6
Q

What is collateral? What could collateral be?

What test is used to classify tangible collateral?

A

The personalty or fixtures creditor can look to for satisfaction.

The collateral could be:

  1. 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

  1. 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.

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