Secured Transactions

Question 1

What are the 2 main categories of collateral?

Answer 1

Goods and Intangibles

Question 2

What are the 4 kinds of ‘goods’?

Answer 2

Consumer goods
Equipment
Farm Products
Inventory

Question 3

What is the mnemonic for intangibles?

Answer 3

GD ACIDIC

Question 4

What are the intangibles?

Answer 4

General Intangibles
Deposit Accounts
Accounts
Chattel Paper
Instruments
Documents
Investment Property
Commercial Tort Claims

Question 5

Consumer Goods

Answer 5

Goods used or bought for personal/household purposes.

Question 6

Equipment

Answer 6

Goods used or bought for business purposes. Also catch-all for goods.

Question 7

Farm Products

Answer 7

Crops, livestock, or supplies for farming operations possessed by a farmer debtor.

Question 8

Inventory

Answer 8

Goods held for sale or lease, or goods furnished under service contracts.

Question 9

Instruments

Answer 9

Papers representing right to be paid (notes, drafts, CDs).

Question 10

Documents

Answer 10

Document that represents right to receive goods.

Question 11

Investment Property

Answer 11

Stocks, bonds, mutual funds, and their accounts.

Question 12

Chattel Paper

Answer 12

A record showing both a monetary obligation AND a security interest.

Question 13

Accounts

Answer 13

A right to payment for property sold or services rendered NOT evidenced by chattel paper or instrument.

Question 14

Deposit Accounts

Answer 14

A bank account.

Question 15

Commercial Tort Claim

Answer 15

Business claim arising out of claimant’s business that isn’t for personal injury.

Question 16

General Intangibles

Answer 16

Property not falling in other categories, such as IP.