Secured Transactions Flashcards
What are the 2 main categories of collateral?
Goods and Intangibles
What are the 4 kinds of ‘goods’?
Consumer goods
Equipment
Farm Products
Inventory
What is the mnemonic for intangibles?
GD ACIDIC
What are the intangibles?
General Intangibles
Deposit Accounts
Accounts
Chattel Paper
Instruments
Documents
Investment Property
Commercial Tort Claims
Consumer Goods
Goods used or bought for personal/household purposes.
Equipment
Goods used or bought for business purposes. Also catch-all for goods.
Farm Products
Crops, livestock, or supplies for farming operations possessed by a farmer debtor.
Inventory
Goods held for sale or lease, or goods furnished under service contracts.
Instruments
Papers representing right to be paid (notes, drafts, CDs).
Documents
Document that represents right to receive goods.
Investment Property
Stocks, bonds, mutual funds, and their accounts.
Chattel Paper
A record showing both a monetary obligation AND a security interest.
Accounts
A right to payment for property sold or services rendered NOT evidenced by chattel paper or instrument.
Deposit Accounts
A bank account.
Commercial Tort Claim
Business claim arising out of claimant’s business that isn’t for personal injury.
General Intangibles
Property not falling in other categories, such as IP.
What are the 3 main requirements for attachment?
Security agreement
Creditor gave value
Debtor has rights in collateral
What are the 3 things required to be in the security agreement?
Record of intent of security
Signed by debtor
Identify the collateral
What are the 5 ways to have Perfection?
Automatic
By taking and Possessing
By control
By vehicle lien
By filing
What are the only 3 categories of collateral that can be perfected by Control?
Investment Property
Electronic Chattel Paper
Deposit Accounts (only way)
What are the 4 main requirements in the financing statements to prefect by Filing?
Debtor’s name/address
Creditor’s name/address
Description of Collateral
Debtor’s Authorization
