Final Flashcards
Elements of Attachment
(1) Something of value given
(2) Debtor has rights in collateral
(3) Authenticated security agreement in writing that properly describes collateral (identifies proper TYPE of collateral) –> must be retrievable and signed (could be email)
4 Types of Goods
Consumer Goods, Farm Products, Inventory, Equipment
Consumer Goods Definition
goods that are used or bought for use primarily for personal, family, or household purposes
Goods Definition
ll things that are tangible and movable when a security interest attaches
Farm Products Definition
goods other than standing timber with respect to which the debtor is engaged in a farming operation and which are:
(A) crops grown, growing, or to be grown, including
(i) crops produced on vines, trees, and bushes; and
(ii) aquatic goods produced in aquacultural operations;
(B) livestock, born or unborn, including aquatic goods produced in aquacultural operations;
(C) supplies used or produced in a farming peration;
(D) products of crops or livestock in their unmanufactured states.
Inventory Definition
Goods, other than farm products, which:
* (A) are leased by a person or lessor;
* (B) are held by a person for sale or lease or to be furnished under a contract of service;
* (C) are furnished by a person under a contract of service; OR
* (D) consist of raw materials, work in process, or materials used or consumed in a business.
Equipment Definition
catch-all category for any goods that are not consumer goods, farm products, or inventory.
What is the catch all category for any goods that are not consumer goods, farm products, or inventory?
Equipment
What type of collateral is a car or boat?
Certificate of Title Collateral
Fixtures Definition
goods that have become so related to particular real property that an interest in them arises under real property law. *special rules apply
What are the types of Payment Obligation Collateral?
Accounts
Health Care Insurance Receivables
Chattel paper
Instruments
Letter of Credit Rights
Payment Intangibles
Accounts Definition
right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of (i.e. buying something on credit, like a TV); (ii) for services rendered or to be rendered; (iii) for a policy of insurance issued or to be issued; (iv) for a secondary obligation incurred or to be incurred; (v) for energy provided or to be provided; (vi) for the use or hire of a vessel under a charter or other contract; (vii) arising out of the use of a credit card or info contained on or for use with the card; or (viii) as winnings in a lottery or other game of chance operated or sponsored by a state.
*cannot be perfected by possession
Health Care Insurance Receivables Definition
hospital’s (or other’s) interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.
Chattel Paper Definition
(A) a right to payment of a monetary obligation secured by specific goods, if the right to payment and security agreements are evidenced by a record; OR (B) a right to payment of a monetary obligation owed by a lessee under a lease agreement with respect to specific goods and a monetary obligation owed by the lessee in connection with the transaction giving rise to the lease, if: (i) the right to payment and lease agreement are evidenced by a record; and (ii) the predominant purpose of the transaction giving rise to the lease was to give the lessee the right to possession and use of the goods. [account becomes chattel paper if buyer grants security interest in purchased item to seller –> right to repossess it]
What type of collateral is a car lease?
Chattel paper
Electronic Chattel Paper Definition
a separate type of defined collateral –> can PERFECT if have control over electronic docs [have to prove to court that one is sole person with authority to edit doc]
Instruments Defintion
negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment. Does NOT include investment property, letters of credit, writings that evidence a right to payment arising out of the use of a credit card or information contained on or for use with a card.
What type of collateral is a promissory note?
Instrument
Payment intangibles definition
payment obligation catch-all] general intangible under which the account debtor’s principal obligation is a monetary obligation. Example: tax return
