Recent- Final Study Deck Flashcards
Type of Collateral: Goods
all things that are tangible and movable when a security interest attaches; multiple types
Type of Collateral: Consumer Goods
goods that are used or bought for use primarily for personal, family, or household purposes
Type of Collateral: Farm Products
goods other than standing timber with respect to which the debtor is engaged in a farming operation and which are:
* (A) crops grown, growing, or to be grown, including
o (i) crops produced on vines, trees, and bushes; and
o (ii) aquatic goods produced in aquacultural operations;
* (B) livestock, born or unborn, including aquatic goods produced in aquacultural operations;
* (C) supplies used or produced in a farming operation;
* (D) products of crops or livestock in their unmanufactured states.
Types of Collateral: Inventory
Goods, other than farm products, which:
* (A) are leased by a person or lessor;
* (B) are held by a person for sale or lease or to be furnished under a contract of service;
* (C) are furnished by a person under a contract of service; OR
* (D) consist of raw materials, work in process, or materials used or consumed in a business.
Types of Collateral: Equipment
catch-all category for any goods that are not consumer goods, farm products, or inventory.
Types of Collateral: Manufactured Home
[certain type of mobile home that meets these requirements] a structure, transportable in one or more sections, which, in the traveling mode, is eight body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. The term includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.
Types of Collateral: Certificate of Title Collateral
Cars or boats, a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest’s obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest’s obtaining priority over the rights of a lien creditor with respect to the collateral.
Types of Collateral: Fixtures
[gray area – intersection of personal and real property –> special rules apply] goods that have become so related to particular real property that an interest in them arises under real property law.
i.e. a pizza oven that is now part of one’s house
Types of Collateral: Payment Obligation
Just a heading, not a defined type
Types of Collateral: Accounts
right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of (i.e. buying something on credit, like a TV); (ii) for services rendered or to be rendered; (iii) for a policy of insurance issued or to be issued; (iv) for a secondary obligation incurred or to be incurred; (v) for energy provided or to be provided; (vi) for the use or hire of a vessel under a charter or other contract; (vii) arising out of the use of a credit card or info contained on or for use with the card; or (viii) as winnings in a lottery or other game of chance operated or sponsored by a state.
Types of Collateral: Health Care Insurance Receivables
sub-category of accounts): hospital’s (or other’s) interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.
Types of Collateral: Chattel Paper
(A) a right to payment of a monetary obligation secured by specific goods, if the right to payment and security agreements are evidenced by a record; OR (B) a right to payment of a monetary obligation owed by a lessee under a lease agreement with respect to specific goods and a monetary obligation owed by the lessee in connection with the transaction giving rise to the lease, if: (i) the right to payment and lease agreement are evidenced by a record; and (ii) the predominant purpose of the transaction giving rise to the lease was to give the lessee the right to possession and use of the goods. [account becomes chattel paper if buyer grants security interest in purchased item to seller –> right to repossess it] –> classic version is buying a TV from Best Buy over 24 months, also leased car. LEASE = CHATTEL PAPER
Can be perfected by possession*(
Types of Collateral: Instruments
negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment. Does NOT include investment property, letters of credit, writings that evidence a right to payment arising out of the use of a credit card or information contained on or for use with a card.
* i.e. promissory note (promise to pay), check
Types of Collateral: Payment intangibles
payment obligation catch-all] general intangible under which the account debtor’s principal obligation is a monetary obligation.
* i.e. tax refund
Types of Collateral: Money
actual money one has – includes bank accounts
Problem: money, once transferred, free of all security interests –> RISKY
Only way to perfect is by possession
