Chapter 30 Flashcards
Attachment
The creditor becomes a secured party with an interest in the collateral
Purchase money security interest
Formed when a debtor used borrowed money from the secured party to buy the collateral
Legal principle
A purchase-money security interest is created when a debtor uses money borrowed from the secured party to purchase the collateral
Default on loan
When you fail to make payments on a loan received
Legal principle: perfection
A series of legal steps a secured party takes to protect its right in the collateral from other creditors that wish to have their debts satisfied through the same collateral
Legal principle financing statement
A document utilized to perfect a security interest by filing
If the debtor is an individual, the secured party files what
A financing statement in which the debtor resides
Legal principle: pledge
The transfer of collateral to the secured party for the purpose of perfection
Instruments
Writings that serve as evidence of rights to payment of money, such as certificates of deposit, stocks, bonds, etc….
Consumer good
A good used or bought for use primarily for personal, family, or household purposes
After acquired property
Property squired by the debtor after the security agreement is made
Proceeds
Something that is exchanged for collateral
Termination statement
Is an amendment to a financing statement that provides that the debtor has no obligation to the secured party
Buyer in the ordinary course of business
A person who routinely buys goods i good faith who routinely sells these goods.
Chattel paper
A writing that indicates both a monetary obligation and a security interest in specific goods, or an instrument, a writing that demonstrates a right to payment of money
