General UCC Art 9 Definitions

Question 1

Debtor

Answer 1

Person who puts up collateral

Question 2

Obligor

Answer 2

Person who owes the debt

Question 3

Secured Party

Answer 3

A person whose favor in a security interest is created or provided under a security agreement, whether or not any obligation to be secured is outstanding

Question 4

Security Interest

Answer 4

an interest in personal property or fixtures which secures payment or performance of an obligation

Question 5

Unsecured Creditor

Answer 5

Only has the debtor’s promise to pay

Question 6

Unsecured Debt

Answer 6

Debtor has a personal obligation to pay

Question 7

Collateral

Answer 7

the property subject to a security interest or agricural lien

Question 8

Goods

Answer 8

all things that are movable when a security interest attaches

Question 9

What do goods include?

Answer 9

fixtures, standing timber to be cut, unborn young animals, manufactured homes, computer programs embedded in goods (if the program is associated with the goods in such a manner that it is considered part of the goods or acquires the right to use the program in connection with the good)

Question 10

Consumer Good

Answer 10

Goods brought or primarily used for personal, family, or household purposes.

Question 11

Farm Products

Answer 11

Goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which crops, livestock, supplies, or products of crops or livestock in their unmanufactured state.

Question 12

Inventory

Answer 12

goods, other than farm products which are leased, held for sale or lease, are furnished under a services contract, raw materials, works in progress, or materials used or consumed in business

Question 13

Equipment

Answer 13

Goods other than inventory, farm products, or consumer goods (sometimes used for business purposes)

Question 14

Record

Answer 14

information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.

Question 15

Account

Answer 15

Right to payment (Think accounts receivable)

Question 16

Chattel Paper

Answer 16

a record that evidences a monetary obligation and a security interest in specific goods (can be tangible or electronic)

Question 17

Commercial tort claim

Answer 17

no personal injury

Question 18

Deposit account

Answer 18

a bank account

Question 19

Document

Answer 19

Document of title of a warehouse receipt (could be bill of lading)

Question 20

Instrument

Answer 20

a negotiable instrument (like a check)

Question 21

General Intangible

Answer 21

a catch-all term for personal property excluding specifically defined terms (includes rights relating to intellectual property)

Question 22

Payment intangible

Answer 22

A general intangible under which the account debtor’s principal obligation is a monetary obligation (water permits or assignments of a promissory note

Question 23

Software

Answer 23

Computer programs excluding those in the definition of goods

Question 24

Tangible chattel paper

Answer 24

chattel paper evidenced by a record (can be electronic)

Question 25

Investment Property

Answer 25

means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account

Question 26

General rule on Investment Property

Answer 26

Art 9 allows for a security interest in investment property

Question 27

Rule on Classification of Collateral

Answer 27

Depends on its primary use at the time the security agreement is entered into

Question 28

Rule on Reliance of Classification of Collateral

Answer 28

Secured Party is entitled to rely on a debtor’s affirmative representations as to the primary use of the collateral but may have limited duty to investigate if there are suspicious circumstances.