Scope of article 9

Question 1

A. Article 9 applies to consensual security interests in personality or fixtures

Answer 1

a. Note: When the collateral is real estate, apply the law of mortgages
b. By contrast, when the collateral is personalty or fixtures, apply Article 9
c. In general, personalty equals goods. Remember that Art 9 applies only to voluntary or consensual collaterizations. Thus, it does not apply tostatutory or mechanics liens (i.e. liens imosed against debtor’s will) Art 9 depends on consent.

Question 2

B. Article 9 cast of characters

Answer 2

a. Debtor: party who owes $
b. Secured party or secured creditor: party who lends $
c. Security agreement: the k or record
d. Security interest: the right that creditor has in debtor’s personalty or fixtures
e. Collateral : see other card for definition

Question 3

Collateral can be

Answer 3

tangible- consumer guoods, equipment, inventory, farm products, fixtures

intangible or semi-tangible,- patents, trademarks, copyright, stocks, bonds, mutual funds,

proceeds-things like proceeds from sale of collateral, promissory notes, commercial paper, accounts receivable, insurance payments

Question 4

Tangible collateral

Answer 4

a. Consumer goods: those items used for personal or familial purposes, such as home dining room set, blender, oven, fridge, car or
b. Equipment: items used in business, like cash registers, cookie ovens, china, dental chair,
c. Inventory: goods held for sale or lease, like stock of stereos, clothing line
d. Farm products: crops, livestock, other supplies like eggs or cows
e. Fixtures: items annexed to realty, like lighting fixtures, sprinkler system, furnace

2. To classify: look to primary purpose in hands of debtor
   a. Subjective test
   b. Classifying is important in deciding how to perfect or determining priority
   c. Golf clubs:
   i. In your hand = consumer goods
   ii. In tiger woods hand = equipment
   iii. In golf store = inventory

Question 5

Intangible or semi-intangible

Answer 5

a. patents, trademarks, copyright.
b. Stocks, bonds, mutual funds, proceeds from sale of collateral, promissory notes and drafts, commercial paper, accounts (right to payment for goods/services,

c. Article 9 extends to voluntary collateralization from sale of collateral
i. Because if intrest is in inventory, that inventory moves

Question 6

Proceeds

Answer 6

whatever received upon sale or other disposition of collateral or proceeds.

Includes insurance payable to the debrtor