Secured Transactions

Question 1

Article 9 of the UCC governs ANY transaction, regardless of its form, that creates a _____. This includes ____ in both tangible and intangible property

Answer 1

security interest
security interest

Question 2

a security interest gives a creditor the right to sell a debtor’s proeprty to satisfy a ___

Answer 2

debtt

Question 3

Collateral refers to the proeprty in which the security interest is created, and it extneds to ____ from the property that serves as collateral

Answer 3

identifiable proceeds

Question 4

Article 9 defines different tyeps of collateral as follows:

GOOD
INVENTORY
keeps CONSUMERS
ACCOUNTABLE

Answer 4

Goods
inventory
consuemr goodes
accounts

Question 5

Goods are all things ____ at the time the security itnerest attaches

Answer 5

moveable

Question 6

Consumer goods are goods used mainly for personal, family, or _____ purpose

Answer 6

household

Question 7

inventory includes goods that are kept by a person for the sale or ___ (does NOT include goods that are being held for ___)

Answer 7

lease
repair

Question 8

Accounts covers any right to payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be sold (i.e., _____)

a secured party can collect directly from the person who owes the debtor if the debtor defaults

Answer 8

accounts recievable

Question 9

A security interest is created/ becomes enforceable upon _____. A valid ____ requires that there is (1) a valid security agreement, the debtor has ____ in the collateral, and the creditor extends ____ to the debtor. ALmost any consideration will suffice

Answer 9

Attachment
Attachment
rights
value

Question 10

a valid security agreements requires some sort of record/ memorialization showing an ___ to create a security agreement, ______ by the debtor (signed/ symbol) and a reasonably identifiable ____ of the collateral

Answer 10

intent
authentication
ddescription

Question 11

will a suepr generic description of the collateral such as “all of detbor’s assets” or “all of debtor’s personal property” be a sufficient description?

Answer 11

NO

Question 12

attachment requires what 3 things?

AVR

Answer 12

Agreement b/e the parties to create a security interest
value given to secured debtor AND
debtor has rights in the collaeral

Question 13

what does a future advance clause do?

Answer 13

in a security agreement, a future advance clause means that the security intrest attaches to any future advnaces,

Question 14

Are after acquired property clauses enforceable and what do they do?

Answer 14

Yes they are enforceable. They are generally enforcable after allowing the after-acquired proprty to be secured in favor of the secured party

BUT they do not apply to CONSUMER GOODS unless the debtor acquired rights in them within 10 days after the secured party gives value

Question 15

For Example: S loans D $10,000 secured by D’s diamond ring with a security agreement
that includes an after-acquired property clause. Here, S will possess a security interest
in the diamond ring and the ____the parties enter into the
security agreement.

Answer 15

property that D acquires after