Definitions

Question 1

Consignor

Answer 1

owner of the goods, such as a manufacturer or wholesaler

Question 2

Consignment

Answer 2

consignor retains title to the goods and delivers them to the consignee for sale to the public

Question 3

PMSI

Answer 3

a special type of security interest in goods that has priority over all other security interests in the same goods

Question 4

Tangible Collateral or Goods

Answer 4

includes all things movable at the time the security interest attaches (including timber to be cut, unborn animals, and growing crops)
**excludes money and intangibles
Note: there 4 in this category (CG, FP, I, E)

Question 5

Consumer Goods

Answer 5

goods used or bought for personal, family, or household purposes

Question 6

Farm Products

Answer 6

Crops, livestock, unmanufactured products of livestock (e.g. eggs) and supplies used or produced in farming operations in the possession of or used by a farmer

Question 7

Inventory

Answer 7

goods that are leased or that are held for sale or lease, goods that are furnished or to be furnished under a contract of service, supplies that are used in manufacturing, materials that are used up quickly or consumed in a business, and work in progress

Question 8

Equipment

Answer 8

goods that are not consumer goods, farm products, or inventory are equipment
**this is the catch-all

Question 9

Instruments

Answer 9

pieces of paper that represent the right to be paid money - include - promissory notes, drafts, and certs of deposit and are sometimes divided into negotiable and nonnegotiable instruments
Intangible or Semi-intangible collateral

Question 10

Documents

Answer 10

pieces of paper that represent the right to receive goods - bill of lading, warehouse receipts - and are sometimes divided into negotiable and nonnegotiable.

Intangible or Semi-intangible collateral

Question 11

Chattel Paper

Answer 11

a record or records evidencing BOTH (i) monetary obligation and (ii) security interest in or a lease of specific goods (excluding charter of vessels)

Note: a record is information that is stored in either a tangible or intangible medium and retrievable in perceivable form

Intangible or Semi-intangible collateral

Question 12

Accounts

Answer 12

any right to payment for goods, services, real property, use of a credit card, or lottery winnings that is not evidenced by an instrument or chattel paper

*does not include deposit accounts, investment property, commercial tort claims, or rights to payment for funds that are advanced or sold

Intangible or Semi-intangible collateral

Question 13

Deposit Accounts

Answer 13

accounts maintained at a bank

*only applies to business deposit accounts and deposit accounts that are claimed as proceeds of other collateral

Intangible or Semi-intangible collateral

Question 14

Investment Property

Answer 14

stocks, bonds, mutual funds, brokerage accounts

Intangible or Semi-intangible collateral

Question 15

Commercial Tort Claims

Answer 15

tort claims filed by an organization

Intangible or Semi-intangible collateral

Question 16

General Intangibles

Answer 16

include any intangible not coming within the scope of the other intangible definitions

Question 17

Proceeds

Answer 17

whatever is received upon the sale, lease, exchange, license, collection, or other disposition of collateral or proceeds

• constituted by any collateral that has changed in form from a previous category
• includes second generation proceeds, insurance payments and claims for damage