Ch 7 Pt 2 not on test Flashcards
Collateral
Security interest in valuable object
Secured transactions
When creditor sold something on credit or made loan
To debtor who agrees to give creditor security interest
In valuable object
Attachment takes place when…
1 secured party has given value
2 debtor owns the collateral
3 security agreement is given
Attachment: security agreement
In writing, signed by debtor
Contains reasonable description of collateral
Perfection
Arises when security interest has attached and creditor
Has taken proper steps required by article 9
Financing statement
Contains names and addresses of creditor and debtor,
Reasonable description of collateral, signature of debtor
General way of perfecting security interest under article 9
Purchase money security interest (PMSI)
Secures purchase price of goods bought for personal
Or household use
A creditor with an attached security interest has priority over a creditor…
Without a security interest
A creditor with a perfected security interest has priority over one …
Whose security interest has not been perfected
When 2 creditors have perfected security interests…
The 1 one whose interest has perfected first has priority
Buyer in ordinary course of business has priority…
Over a perfected security interest
Artisan’s lien
Narrow property interest that arises when someone who
Contributes parts or services to personal property isn’t paid
Allows them to keep property until you pay them, if they sell
Property can only profit from value they added to property
Mechanics lien
Arises when someone contributes materials to real estate
And isn’t paid
Public nuisance
Arises from use of land that causes inconvenience or damage
To the public
Ex. Discharging industrial waste that pollutes rivers killing fish
Common law nuisance
Unreasonable use of one’s property as to cause substantial
Interference with the enjoyment of another’s land
Ex. Smoke, dust, noise
