Secured Transactions

Question 1

What are goods?

Answer 1

Goods are all things that are movable at the time the security interest attaches.

Question 2

What are the four types of goods?

Answer 2

Consumer goods, inventory, farm products, and equipment

Question 3

What is a security agreement?

Answer 3

An agreement that creates or provides for a security interest in certain collateral. The interest must be in writing, contain a granting clause, a description of the collateral, and be authenticated by the debtor

Question 4

What is required for attachment?

Answer 4

1. The secured party gives value.
2. The debtor has rights in the collateral
3. The debtor has authenticated a security agreement

Question 5

Purchase Money Security Interest (PMSI)

Answer 5

A security interest in good that pertains to goods that are purchase-money collateral

Question 6

When does perfection occur?

Answer 6

A security interest is perfected if it has attached and all of the requirements have been met. (filing in the Secretary of State’s office)

Question 7

Priority rule for Securities?

Answer 7

Generally, first in time, first in right. Specifically, perfected over unperfected.