Secure Transactions

Question 1

Security Interest

Answer 1

interest in personal property or fixtures that secures payment or performance

Question 2

Security Agreement

Answer 2

Contract that creates a security interest

Question 3

Secured party

Answer 3

creditor who obtains security interest

Question 4

obligor

Answer 4

partyt hat must pay or perform obligation

Question 5

debtor

Answer 5

has an interest in the collateral

Question 6

Scope of A.9

Answer 6

transactions that create a security interest in property or fixtures by contract

Question 7

Goods

Answer 7

a. consumer goods
b. inventory
c. equipment
d. farm products

Question 8

Right to Payment

Answer 8

1. instruments
2. chattel paper
3. Accounts
4. Payment intangibles

Question 9

Attachment

Answer 9

Arrangement linking debt to a particular part of collateral

Question 10

Requirements for Attachment

Answer 10

1. value given
2. debotr has rights to collateral
3. security agreement

Question 11

Security Agreements

Answer 11

1. recording in tangible medium
2. authienticated by debtor
3. describes the collateral, must reasonably identify
   - posseison or control can be alternative to authenicated record

Question 12

Rights and Duties of the Secured Party in Possesion

Answer 12

1. Secured party must act with reasonable care
2. must keep collateral identifiable
3. Must relinquish collateral once satisfied
4. may charge for reasonable expenses.

Question 13

After-acquired property

Answer 13

Property acquired by debtor after the security interest attaches.

Generally, lender must include an after-acquired property clause to include

Question 14

Accessions

Answer 14

Goods that are physically united with other goods but identity of original goods is not lost.

Question 15

comingled goods

Answer 15

Goods that united to the point that their identity is lost.

Question 16

Proceeds

Answer 16

Whatever results when collateral is sold, leased, licensed, or exchanged.

Security interest automatically attaches to proceeds of collateral.

Question 17

Purchase Money Security Interest

Answer 17

Security interest where money is used to acquire goods or software.

Question 18

Methods of Perfection

Answer 18

1. Filing
2. Possession
3. Control
4. Alternate Perfection Systems

Question 19

Perfection by Filing

Answer 19

File at central filing office of appropriate state.

All applicable except deposit accounts, letters of credit, money, cars, and collateral subject to special state regulations.

Question 20

Financing Statement

Answer 20

Notice filing, should be filed in state where debtor is located.

State of incorporation, or principle residence.

Requires: name of debtor, name of secure party, description of collateral

Debtor must authorize

Question 21

Perfection by Possesion

Answer 21

Security Interest in Tangible Collateral may be perfected by taking possession of the collateral

1. money
2. goods
3. instruments
4. negotiable documents
5. tangible chattel paper

Question 22

Perfection by Control

Answer 22

1. deposit accounts
2. investment property
3. Electronic Dox
4. Electronic Chattel paper
5. Letter of credit rights

Question 23

Automatic Perfection

Answer 23

Some automatically perfect at attachment.

1. PMSI in consumer goods
2. sales of payment intagibles or promissory notes

Question 24

Temporary Automatic Perfection

Answer 24

If a debtor moves out of state, changes their name, etc., generally have 4 month window to discover change and file an amendment.