Business Law- Chapter 27 Flashcards

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1
Q

Personal Property

A

Tangible property such as equipment, vehicles, furniture, and jewelry, as well as intangible property such as securities, patents, trademarks and copyrights.

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2
Q

Revised Article 9 of the UCC

A

An article of the Uniform Commercial Code that governs secured transactions in personal property.

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3
Q

Secured Transaction

A

A transaction that is created when a creditor makes a loan to a debtor in exchange for the debtor’s pledge of personal property as security.

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4
Q

Collateral

A

Personal property that is subject to a security agreement.

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5
Q

Security Agreement

A

A written document signed by a debtor that creates a security interest in personal property.

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6
Q

Floating Lien

A

A security interest in property that was not in the possession of the debtor when the security agreement was executed.

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7
Q

After-acquired Property

A

Property that a debtor acquires after a security agreement is executed.

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8
Q

Sale Proceeds

A

The resulting assets from the sale, exchange, or disposal of collateral subject to a security agreement.

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9
Q

Future Advances

A

Funds advanced to a debtor from a line of credit secured by collateral. Future advances are future withdrawals from a line of credit.

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10
Q

Perfection of a Security Interest

A

A process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

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11
Q

Financing Statement

A

A document filed by a secured creditor with the appropriate government office that constructively notifies the world of his or her security interest in personal property.

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12
Q

Perfection by Possession of the Collateral

A

A rule that says if a secured creditor has physical possession of the collateral, no financing statement has to be filed; the creditor’s possession is sufficient to put other potential creditors on notice of the creditor’s secured interest in the property.

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13
Q

Purchase Money Security Interest

A

An interest a creditor automatically obtains when she extends credit to a consumer to purchase consumer goods.

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14
Q

Termination Statement

A

A document filed by a secured party that ends a secured interest because the debt has been paid.

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15
Q

Priority of Claims

A

The order in which conflicting claims of creditors in the same collateral are solved.

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16
Q

Buyer in the Ordinary Course of Business

A

A person who is in good faith and without knowledge of another’s ownership or security interest in goods buys the goods in the ordinary course of business rom a person in the business of selling goods of that kind.

17
Q

Default

A

Failure to make scheduled payments when due, bankruptcy of the debtor, breach of the warranty of ownership as to the collateral, and other events defined by the parties in a security agreement.

18
Q

Repossession

A

A right granted to a secured creditor to take possession of the collateral upon default by the debtor

19
Q

Retention of Collateral

A

A secured creditor’s repossession of collateral upon a debtor’s default and proposal to retain the collateral in satisfaction of the debtor’s obligation.

20
Q

Disposition of Collateral

A

A secured creditor’s repossession of collateral upon a debtor’s default and selling, leasing or otherwise disposing of it in a commercially reasonable manner.

21
Q

Deficiency Judgment

A

A judgment that allows a secured creditor to successfully bring a separate legal action to recover a deficiency from the debtor. It entitles the secured creditor to recover the amount of the judgment from the debtor’s other property.

22
Q

Judgment on the Underlying Debt

A

A right granted to a secured creditor to relinquish her security interest in the collateral and sue a defaulting debtor to recover the amount of the underlying debt.

23
Q

Artisan’s or Mechanic’s Lien

A

A statutory lien given to workers on personal property to which they furnish services or materials in the ordinary course of business.