Property (Q3 July 2017)

Question 1

What transactions are subject to Article 9 provisions?

Answer 1

They include:

• security interest agreements;
• consignments; and
• leases that are actually sales in disguise

Question 2

What is the FIRST step in a secured transactions question?

Answer 2

Determine what the collateral of the security interest includes.

Question 3

What are the four tangible collaterals?

Answer 3

1. Equipment;
2. Inventory;
3. Consumer goods;
4. Farming equipment

Question 4

What is “equipment”?

Answer 4

Equipment is the default rule which is all collateral that is used during one’s business.

Question 5

What is “inventory”?

Answer 5

Inventory is the sale or lease of goods and also includes goods that are easily depleted or replenished.