COLLATERAL

Question 1

Collateral

Answer 1

personal property that is subject to the lien is called the collateral

Question 2

How to Classify Collateral

Answer 2

depends upon the principal use of the debtor

determined when the security interest is created

classification can change over the lifetime of the property

Question 3

2 Types of Collateral

Answer 3

Tangible: Goods & Other: Non-Goods

Question 4

Consumer Goods

Answer 4

Purchased for personal, family, household use

Question 5

Farm Products

Answer 5

Crops/livestock owned by farmer

Question 6

Inventory

Answer 6

Goods, besides consumer goods or farm products, held for sale/lease by business or consumed in short time (includes raw materials)

Question 7

Equipment

Answer 7

Catchall; Goods for use primarily in business

Question 8

Non-Goods

Answer 8

Account
Negotiable Instrument
Chattel Paper
Deposit Accounts
Documents
Investment Property
Tort Claims
Letter of Credit Rights
General Intangibles