Generally Flashcards
1
Q
Security Interest
A
Interest in personal property or fixtures that secures payment or performance of an obligation
2
Q
Does the substance of transaction or the form control an agreement for a Security Interest?
A
Substance of the transaction
3
Q
Secured Party
A
Person in whose favor the Security Interest is created under the security agreement
4
Q
Obligor
A
Person who must pay the obligation secured with the SI
5
Q
Debtor
A
Person who has interest (other than the SI) in the collateral
6
Q
Collateral
A
Property subject to the SI
7
Q
What are the 2 types of Tangible collateral?
A
Goods and Software inbedded in goods
8
Q
What are the 4 classes of goods recognized as tangible collateral?
A
- Consumer goods - goods acquired for personal, family, or household purposes;
- Farm products - crop or livestock or supplies used/produced in farming;
- Inventory - goods, other than farm products, held for sale or lease… essentially goods consumed in a business (e.g., fuel); and
- Equipment - catchall goods that are not consumer, farmer, or inventory
9
Q
What article governs the transaction that creates and SI?
A
UCC Article 9
