mee secured transactions Flashcards
CLASSIFYING COLLATERAL
Goods
consumer goods
farm products
inventory
equipment
*classification can change
consumer goods
acquired primarily for personal, family, or household purposes
farm products
crops, livestock, supplies used or produced in *farming operations
inventory
goods NOT farm products and held for sale or lease
- service contract
- raw materials
- works in progress
- materials used/consumed in business
equipment
catchall
fixtures
attached to house, can’t take with you - under real property NOT secured transactions
Other Collateral - rights to payment
instrument
chattel paper
accounts
payment intangible
instrument
negotiable instruments, e.g. promissory notes, checks
e.g. business loans money to parties and holds promissory notes for borrowers’ obligations to pay
chattel paper
record with two components: monetary obligation AND security interest
e.g. Paper Company provides that store retains security interest in paper sold until purchase price is repaid
accounts
right to payment of a monetary obligation for a property that is sold, leased, or licensed OR for services rendered
e.g. landscaper gives right to receive payment for landscaping work to bank for loan
payment intangible
catch all
e.g. business loans money to many parties and uses loans as collateral for a second loan from lender
Other Types of Collateral
documents
investment property
deposit accounts
commercial tort claims
letter of credit rights
general intangibles
documents
give holder ownership rights in goods held by bailee
investment property
certified and uncertified securities
e.g. stocks and bonds
