Chapter 27

Question 1

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

Answer 1

personal property

Question 2

Credit that does not require any security (collateral) to protect the payment of the debt

Answer 2

unsecured credit

Question 3

Credit that requires security (collateral) to secure payment of the loan

Answer 3

secured credit

Question 4

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

Answer 4

Revised Article 9 (Secured Transactions)

Question 5

Amendments to Revised Article 9 that address modern commercial issues and expand the use of electronic methods in secured transactions

Answer 5

2010 Amendments to Revised Article 9

Question 6

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

Answer 6

secured transaction

Question 7

The seller, lender, or other party who has a security interest in personal property.

Answer 7

secured party

Question 8

information about a trial such as the trial transcript, evidence introduced at trial, and the court’s written memorandum; As defined by the Uniform Commercial Code, information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form

Answer 8

record

Question 9

A record that is available to the public for inspection that is the correct source of the debtor’s name that appears on a financing statement

Answer 9

public organic record

Question 10

An organization that is formed under the laws of a state or the United States, such as a corporation, limited liability company, limited partnership, general partnership, sole proprietorship, business trust, and such

Answer 10

registered organization

Question 11

Occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods

Answer 11

two-party secured transaction

Question 12

A party from whom a buyer obtains financing to purchase goods from a seller in which the lender takes a security interest in the goods

Answer 12

third-party lender

Question 13

Occurs when a seller sells goods to a buyer who has obtained financing from a third-party lender who takes a security interest in the goods sold.

Answer 13

three-party secured transaction

Question 14

Personal property that is subject to a security agreement.

Answer 14

collateral

Question 15

Tangible things that are movable at the time of their identification to a contract.

Answer 15

goods

Question 16

Goods that can be used as collateral for secured transactions

Answer 16

tangible collateral

Question 17

Intangible personal property that includes the right to payment of monetary obligations for personal or real property sold or leased, services rendered, and policies of insurance.

Answer 17

accounts

Question 18

A record that evidences both a monetary obligation and a security interest in specific goods

Answer 18

chattel paper

Question 19

Intangible personal property that includes demand, time, savings, passbook, or similar accounts maintained at a bank or financial institution.

Answer 19

deposit account

Question 20

Intangible personal property such as checks, notes, stocks, bonds, and other investment securities; A special form of contract that satisfies the requirements established by Article 3 of the UCC; also called negotiable instrument or commercial paper

Answer 20

instrument

Question 21

A security, whether certificated or uncertificated, securities account, security entitlement, or commodity contract or account, such as stocks, bonds, and commodities future contracts

Answer 21

investment property

Question 22

Defined by the Uniform Commercial Code (UCC) as being personal property other than accounts, chattel paper, deposit accounts, documents, goods, instruments, investment property, letters of credit, money, and oil, gas, or other minerals prior to extraction.

Answer 22

general intangible

Question 23

Items that have no physical substance that can be used as collateral for secured transactions

Answer 23

intangible collateral

Question 24

A situation in which a creditor has an enforceable security interest against a debtor and can satisfy the debt out of the designated collateral.

Answer 24

attachment

Question 25

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

Answer 25

security agreement

Question 26

The act of signing a document or adopting or accepting an electronic record by electronic signature (electronic symbol, sound, or process).

Answer 26

authenticate

Question 27

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

Answer 27

floating lien

Question 28

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

Answer 28

after-acquired property

Question 29

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

Answer 29

sale proceeds

Question 30

Funds advanced to a debtor in the future as prearranged in a security agreement.

Answer 30

future advances

Question 31

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

Answer 31

perfection of a security interest

Question 32

A process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral. ____________ are effective for 5 years from the date of filing.

Answer 32

financing statement

Question 33

A uniform financing statement form that is used in all states

Answer 33

UCC Financing Statement (Form UCC-1)

Question 34

A document filed by a secured creditor with the appropriate government office to extend the five-year term of a financing statement for an additional five-year term. Successive continuation statements may be filed.

Answer 34

continuation statement

Question 35

A rule stating that 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.

Answer 35

perfection by possession of collateral

Question 36

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

Answer 36

purchase money security interest

Question 37

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

Answer 37

termination statement

Question 38

State statutes that provide for filing of certificates of title for motor vehicles, trailers, mobile homes, boats, farm tractors, or the like that may specify security interests held in the property.

Answer 38

certificate of title statutes

Question 39

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

Answer 39

priority of claims

Question 40

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

Answer 40

buyer in the ordinary course of business

Question 41

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.

Answer 41

default

Question 42

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

Answer 42

repossession

Question 43

A secured creditor’s repossession and retention of the collateral upon a debtor’s default.

Answer 43

retention of the collateral

Question 44

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

Answer 44

disposition of collateral

Question 45

A judgment of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.

Answer 45

deficiency judgment

Question 46

The right of a mortgagor to recover real property that is collateral for a mortgage after the debtor’s default and before foreclosure by paying the mortgagee the full amount of the debt plus costs; The right of a debtor to recover personal property that is collateral for a secured transaction after the debtor’s default and before the creditor has disposed of the property by paying the secured creditor the full amount of the debt plus costs.

Answer 46

right of redemption

Question 47

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

Answer 47

judgment

Question 48

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

Answer 48

artisan’s lien