Secured Transactions

Question 1

The person/bank that provides credit to the debtor and takes an interest in the debtor’s collateral to help assure repayment of the debt

Answer 1

Secured party

Question 2

The entity/person that owes either payment or some specified performance to the secured party

Answer 2

Debtor

Question 3

A legal interest in collateral that secures either payment or debtor’s specified performance of some obligation

Answer 3

Security interest

Question 4

A transaction that creates a security interest

Answer 4

Security agreement

Question 5

Goods that are purchased for personal use

Answer 5

consumer goods

Question 6

Goods that were purchased for use in a business

Answer 6

Equipment

Question 7

Goods that were purchased for sale or lease to a third party

Answer 7

Inventory

Question 8

Goods that have been attached permanently or relatively permanently to real property

Answer 8

Fixtures

Question 9

goods produced on a form such as livestock or crops

Answer 9

Farm products

Question 10

A writing that provides evidence of hte monetary obligation and hte security interest in the good; basically a piece of paper that recits the indebtedness

Answer 10

Chattel paper

Question 11

The moment when a security interest is enforceable against a debtor by the secured party

Answer 11

Attachment

Question 12

A security interest in an asset, and using that same asset as collateral

Answer 12

Purchase Money Security Interest (PMSI)