Chapter 27: Secured Transactions Flashcards
personal property
tangible property such as equipment, vehicles, furniture, and jewelry, as well as intangible porperty such as securities, patents, trademarks, and copyrights.
article 9 (secured transactions) of the uniform commercial code
an article of the uniform commercial code (ucc) that governs secured transactions in personal property
2010 amendments to revised article 9
amendments to this article that address modern commercial issues and expand the use of electronic methods in secured transactions
secured transaction
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
secured party
the seller, lender, or other party who has a security interest in personal property
two-party secured transaction
a transaction that occurs when a seller sells goods to a buyer on credit and retains a security interest in the goods
third-party lender
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
three-party secured transaction
a transaction that 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
authenticate
the act of signing a document or adopting or accepting an electronic record by electronic signature (electronic symbol, sound, or process)
floating lien
a security interest in property that was not in the possession of the debtor when the security agreement was executed
after acquired property
property that a debtor acquires after a security agreement is executed
future advances
funds advanced to a debtor in the future as prearranged in a security agreement
perfection of a security interest
a process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral
financing statement
a document filed by a secured creditor with the appropriate government office that constructively notifies the world of their security interest in personal property
perfection by filing a finance statement
in a secured transaction, perfecting a creditor’s security interest in collateral by filing a financing statement in the appropriate government office
ucc financing statement (form ucc1)
a uniform financing statement form that is used in all states to perfect a security interest in personal property
perfection by possession of collateral
a rule that says if a secured creditor has physical possession of the collateral, no financing statement has to be filed
purchase money security interest
an interest a creditor automatically obtains when they extend credit to a consumer to purchase consumer goods
perfection by a purchase money security interest in consumer goods / perfection by attachment / automatic perfection rule
a creditor who extends credit to a consumer to purchase a consumer good under a written security agreement obtains a security interest in the consumer good that automatically perfects the creditor’s security interest at the time of the same
termination statement
a document filed by a secured party that ends a secured interest because the debt has been paid
certificate of title statute
a state statute that provides for filing of certificated of title for motor vehicles, trailers, mobile homes, boats, farm tractors, or the like,, and that may specify security interests held in the property
priority of claims
the order in which conflicting claims of creditors to the same collateral are solved
buyer in the ordinary course of business
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 selling goods of that kind
repossession
a right granted to a secured creditor to take possession of the collateral upon default by the debtor
disposition of collateral
a secured creditor’s repossession of collateral upon a debtor’s default and selling, leasing, or otherwise disposing of it in a commercially resonable manner
deficiency judgment
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
aristan’s lien / super-priority lien
a statytory lien given to workers on personal property to which they furnish services or materials in the ordinay course of business, which usually prevails over all other security interests in the goods
