Collateral Flashcards
What are the types of collateral identified in Article 9?
Goods, and semi-intangible and tangible property
What are the different types of Goods as classified by Article 9?
- Consumer Goods
- Equipment
- Farm Products
- Inventory
What are “consumer goods” as classified in Article 9?
Used or bought for use primarily for personal, family or household purposes
What is “equipment” as classified in Article 9?
Used or bought for use primarily in business. Generally equipment is the default category for “goods,” even if it does not fit the definition
What are “farm products” as classified in Article 9?
Crops or livestock or supplies used or produced in farming operations or products of crops or livestock in their unmanufactured states (such as ginned cotton, wool-clip, maple syrup, milk and eggs) if they are in the possession of a debtor engaged in farming operations (easy to spot because there is a farmer
What is “inventory” as classified in Article 9?
Held by a person who holds them for sale or lease or to be furnished under service contracts; materials used or consumed in a business
What is a guitar purchased by Harry Homebody as a present for his son Marvin?
Harry Debtor purchases guitar - This is a consumer good
I think this is a consumer good under art. 9, The definition of consumer good in article 9 is …, and then specify the fact that I think makes it a consumer good (personal reasons, etc.)
What kind of collateral is a guitar purchased by Sterling Studly, a professional rock musician, to be used on tour
Equipment, equipment is used…, Striling uses this for .. .
What kind of collateral is milk in the hands of a farmer (who got it from his cows)?
A farm product
What kind of collateral is milk in the hands of a grocery store (or a restaurant)?
Inventory
What kind of collateral are automobiles held by a local car rental agency?
Inventory
What kind of collateral are pencils and other stationery supplies used by Sears or some other large retailer in its credit offices
Equipment, on the other hand this could be inventory - In the real world there can only be one - Mutually exclusive, on the bar you can hyothesize how it could be both (that would be good for points)
What are the 8 types of semi-intangible and intangible property?
- Instruments
- Documents
- Chattel Paper
- Investment Property
- Accounts
- Investment Accounts
- Commercial Tort Claims
- General Intangibles
In semi-intangible and intangible property what is an instrument?
Negotiable instruments and any other writing which evidences a right to the payment of a monetary obligation, and which are in the ordinary course of business transferred by delivery with any necessary indorsement or assignment (does not include investment property).
In semi-intangible and intangible property what is a document?
A document which in the regular course of business is treated as evidencing that the person in possession of it is entitled to receive, hold, and dispose of the document and the goods it covers (e.g., bill of lading, warehouse receipt).