Secured Transactions

Question 1

Security Interest

Answer 1

An interest in personal property or fixtures that secures payment or performance of an obligations. [U.C.C. 1-201(b)(35)].

Question 2

Consignments

Answer 2

The consigner (the owner of goods, such as a manufacturer or wholesaler) retains title to goods and delivers them to the consignee (a retailer) for sale to the public.

Question 3

When must a consignor comply with Article 9?

Answer 3

A consignor must comply with Article 9 to protects its interest in consigned goods against creditors of the consignee if:

1) the consigned goods are worth a total of $1,000 or more;
2) the consignor did not use the goods for personal, family, or household purpose;
3) The consignee is a person who: deals in good of that kind and under the name other than the consignor’s; is not an auctioneer; and is not generally known by her creditors to be substantially engaged in selling goods of others.

Question 4

Debtor

Answer 4

The person who owes payment or performance of the obligation secured.

Question 5

Secured party

Answer 5

A lender, seller or other person in whose favor there is a security.

Question 6

Security agreement

Answer 6

The agreement between the debtor and the secured party that creates the security interest.

Question 7

Security interest

Answer 7

An interest in personal property or fixtures which secures payment or performance of an obligation.

Question 8

Collateral

Answer 8

The property subject to a security interest.