Question 1

after-acquired property

Accepted Answer

- a type of evidence submitted in support of an affirmative defense in employment discrimination - evidence that, prior to the employer's discriminatory act, the employee engaged in misconduct sufficient enough to warrant dismissal had the employer known of it earlier

Question 2

attachment

Accepted Answer

-

Question 3

authentication

Accepted Answer

- to sign a record, or with the intent to sign a record, to execute or to adopt an electronic sound, symbol, or the like to link with the record - a record is retrievable information inscribed on a tangible medium or stored in an electronic or other medium

Question 4

collateral

Accepted Answer

- under Article 9 of the Uniform Commercial Code, the property subject to a security interest

Question 5

continuation statement

Accepted Answer

- a statement that, if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years - the perfection of a security interest can be continued in the same manner indefinitely

Question 6

cross-collateralization

Accepted Answer

- the use of an asset that is not the subject of a loan to collateralize the loan

Question 7

debtor

Accepted Answer

- under Article 9 of the Uniform Commercial Code, any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral

Question 8

deficiency judgement

Accepted Answer

- a judgement against a debtor for the amount of a debt remaining unpaid after collateral has been repossessed and sold

Question 9

execution

Accepted Answer

- an action to carry into effect the directions in a court decree or judgement

Question 10

financing statement

Accepted Answer

- a document prepared by a secured creditor and filed with the appropriate government official to give notice to the public that the creditor claims an interest in collateral belonging to the debtor named in the statement - the financing statement must contain the names and addresses of both the debtor and the creditor, and describe the collateral by type or item

Question 11

floating lien

Accepted Answer

- a security interest in proceeds, after-acquired property, or property purchased under a line of credit (or all three); a security interest in collateral that is retained even when the collateral changes in character, classification, or location

Question 12

junior lienholder

Accepted Answer

- a person or business that holds a lien that is subordinate to one or more other liens on the same property

Question 13

levy

Accepted Answer

- the obtaining of money by legal process through the seizure and sale of property, usually done after a writ of execution has been issued

Question 14

perfection

Accepted Answer

- the legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by the filing of a financing statement with the appropriate government official

Question 15

pledge

Accepted Answer

- a common law security device (retained in Article 9 of the Uniform Commercial Code) in which personal property is turned over to a creditor as security for the payment of a debt and retained by a creditor until the debt is paid

Question 16

proceeds

Accepted Answer

- under Article 9 of the Uniform Commercial Code, whatever is received when the collateral is sold or otherwise disposed of, such as by exchange

Question 17

purchase-money security interest (PMSI)

Accepted Answer

- a security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer

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Chapter 21 - Secured Transactions Flashcards

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