General Principles

Question 1

When does a SI arrise?

Answer 1

When a debtor uses property as collateral to secure repayment of funds to a SP

Question 2

When does UCC article 9 apply?

Answer 2

transactions that create and SI in personal property or fixtures by contract

leases that are for the entire economic life of the item

sales of accounts receivable, chattel paper, and negotiable instruments