Definitions

Question 1

Define: Secured Transaction

Answer 1

A transaction intended to create a security interest in personal property or fixtures. Generally involves a sale on credit or a loan in which the seller or the lender obtains a lien on some or all of the debtor’s property as security for the payment.

Question 2

Define: Debtor

Answer 2

The person who owes payment or performance of the obligation secured.

Question 3

Define: Secured Party

Answer 3

A lender, seller, creditor, or other person in whose favor there is a security interest.

Question 4

Define: Security Agreement

Answer 4

The agreement between the debtor and the secured party that creates the security interest.

Question 5

Define: Security Interest

Answer 5

An interest in personal property or fixtures which secures payment or performance of an obligation. It is a contingent property interest in the debtors collateral that the debtor grants to the creditor.