is it Collateral or not

Question 1

What does ACPP stand for Glan at 47

Answer 1

1. Accouts
2. Chattel Paper
3. Payment intangbles
4. Promisory notes (IOU)

Question 2

What is included in Chattel Paper, remember this catagory is the **SALE **of collateral glan at 57

Answer 2

Equipment leases
conditional sales

Question 3

Definition of account

Answer 3

Right to payment of a monitary obligation (this is Broad)

Question 4

Accounts consist of what
Note: typically arise from sale of goods

Answer 4

Right to Payment can arise from:
1. sale
2. lease
3. license
4. assignment
5. or other disposition of property
6. services rendeder or not rendered
7. policy of insurance issued or about to be issued
8. a secondary obligation incured or to be incurred
9. energy provided or to be provided
10. use or hire of vessel under charter or K
11. credit card use
12. lottery winnings
13. health care receivable

Question 5

Accounts excludes

Answer 5

1. right to payment evidenced by chattel paper.
2. Right to payment by instrument,** commercial tort claims**, deposit accounts, investment property, letter of rights or credit and right of payment for money.

Question 6

Chattel Paper

Answer 6

a record, written or electronic, that evidences BOTH a monitary obligation and a SI in good or lease of goods.

These include a True Lease, License of Software

Question 7

Chattel Paper Transaction usually arise from:

Answer 7

the purchase of goods under a retail installment sales agreement.
Seller gets SI in goods
- the sale of this retail sales agreement to a 3rd party is the sale of chattel paper.
-

Question 8

who is the CR and DR in chattel paper

Answer 8

- there are 2 debors here. need to confirm this.
1. The buyer of the goods is the account Debtor.
2. the seller of the chattel paper is the account debtor
3. the buyer of the chattel paper is the secured party

Question 9

What is a payment intangible

Answer 9

a general intangible where the account debtors principle obligation is a monetary obligation.

Question 10

Payment intangible Example

Answer 10

lender sells a its right to receive repayment on a loan to a 3rd party collector.

Question 11

what is a Promisory Note

Answer 11

An instrument evidenced by a promise to pay a monetary obligation

Question 12

**what is exlcuded from article 9 ACPP
4 types

Answer 12

1. any sale of items that are part of a sale of a business out of which they arose.
   - Exmaple: resturant owner sells business along wiht account receivables. The AR is not covered.
2. assigments of receivables for collection purposes only.
   - owner assigns AR to agency for collection purposes only.
3. the assigment of a Right of payment under K to a 3rd party hwo agrees to perform the obligation. The entire K is transferred to include payment.
   - the landscaper who has too muck work and give up a K
4. a single account/Payment intangible or Promisory note in full or partial satisfaction of a pre-existing debty.
   - the example is you give the plumber a single account to pay off you debt to the plumber.

Question 13

Definition of inventory:

Answer 13

goods other then Farm Products:
1. leased by a person on lessor
2. held by a person for sale or lease or to be furnished under K for serivce; or
3. are furnished under K for serivce; or
4. consist of raw materials, works in progress or materials usedor consumed in a business

Question 14

how do we define equipment: hint this is a negative definition.

Answer 14

equipment is goods that are not:
1. inventory
2. farm products
3. or consumer goods

Question 15

what is intangible property

Answer 15

Look to Glannon at 33 and 35: intangible represents a right of the Dr.
- a RIGHT OF PAYMENT of a monitary obligation.

Question 16

General Intangibles: hint this is a negative definition.

Answer 16

like equipment is defined by exclusion: includes: software license, liquor license, OP copy rights, trademarks etc.

Question 17

Look at the analysis of answering a question in Glan at 37

Answer 17

1. # the item is not claiming a right of payment of a monetary obligation

Question 18

special rule in defining collateral

Answer 18

if you cannot define it you need to spell it out with particularity

Question 19

Quasi intangible property

Answer 19

Glan at 33 and 37
- Instruments: negotiable instruments or any other writing evidenced by the right to the payment of a monetery obligation.
- checks, promisory notes, warehouse receipts

Question 20

classification is always from the point of view of the debtor

Answer 20

you buy are car and sign a promisory note: you have a consumer good,