Classifying Collateral Flashcards
1
Q
Consumer goods
A
goods for personal, family, or household purposes
(electronics, furniture, boats, appliances)
2
Q
Farm products
A
crops, livestock, supplies used (animal feed, fertilizer)
3
Q
Inventory
A
Products held for sale or lease, goods that are furnished under a service, raw materials.
NOT: violins in Acme’s possession that are being repaired for their owners are therefore neither inventory nor accounts.
4
Q
Equipment
A
CATCHALL
5
Q
Fixtures
A
Fixed in some way to real property (chandelier, windows, toilet, septic tank)
6
Q
Instrument
A
Ex. promissory notes, checks, commercial paper
7
Q
Chattel paper
A
check (or other monetary obligation) + security agreement
8
Q
Accounts
A
Right to be repaid from another party.
9
Q
Payment Intangible
A
CATCHALL - right to be repaid loans of money
