Secured Transactions Flashcards
Article 9 security interest
consensual lien on personal property
Types of personal property (goods)
- Consumer goods
- Farm products
- Inventory
- goods held for sale
- goods held for lease
- goods that are rapidly consumed - Equipment (residual category)
Account (definition)
Right to payment arising out of one of the transactions w/n article 9
Types of Accounts
- Sale of goods
2. Rendition of services
Article 9 instrument
Article 3 negotiable instrument
Types of Personal Property (non-goods)
- Accounts
- NIs
- Chattel Paper
- Deposit Accounts
- Documents
- Investment Property
- Commercial Tort Claims (CTCs)
- General Intangibles
Chattel Paper
- Written lease of personal property
2. Documentation generated by a secured transaction
Deposit Accounts (not included)
Consumer account when the transaction is for a consumer purpose
CTCs
- Any tort claim that a business has is a CMT
2. Tort claims by individuals are CMTs if they arise out of the operation of a biz + do not involve PI.
General intangibles
Residual category for all non-goods
Attachment (effect)
Article 9 event when a creditor acquires a security interest and becomes a secured party.
Attachment creates rights against the debtor
Attachment events (Very Rich Shit)
- Value given
- Debtor has to have rights in the collateral
- SOF
Article 9 SOF
- Debtor must authenticate
- Evidences grant of security interest
- Describe collateral
Article 9 SOF description
*Cannot be super-generic
OK:
“All inventory”
“All equipment”
“All chattel paper”
Description of CTCs
Must be somewhat specific (date)
Description of consumer goods
Even more specific:
OK:
“All furniture”
“All snowmobiles”
SOF Exception
Possession by secured party
After acquired property clauses
OK
Exceptions:
- CMTs
- Consumer goods must be acquired w/n 10 days of value given
Future advance clauses
Eliminates the need for multiple security agreements
Proceeds (effect)
Security interest will automatically attach to identifiable proceeds
Proceeds (definition)
Anything the debtor acquires as a consequence of the debtor’s rights int he collateral
Perfection by Financial Statement
Perfects a security interest in all types of collateral except - deposit accounts
Correct filing state
Where debtor is located regardless of the location of collateral
Financial Statement Elements
- Debtor name
- Secured party name
- Description of collateral
- Authorized by debtor
