Security Interests & Agreements Flashcards
Does UCC Article 9 apply to Real Property transactions?
No (e.g., mortgages)
Four Types of Tangible Goods
Farming Goods
Consumer Goods
Inventory
Equipment
Farming Goods
items used/produced in farming (e.g., crops)
Consumer Goods
items used for personal, household uses
Inventory
goods kept for sale or lease
Equipment
catchall for tangible items (e.g., factory machinery)
5 Kinds of Intangible Goods
Instruments Documents Chattel Paper Accounts General Intangibles
Instruments
writings representing the right to be paid money (e.g., promissory notes, checks)
*intangible good
Documents
writings representing the right to receive goods (e.g., bills of lading, receipts)
*intangible good
Chattel Paper
record evidencing an obligation and SI in goods or a lease of goods (e.g., promissory note and a security agreement)
*intangible good
Accounts
A right to payment not evidenced by an instrument or chattel (e.g., account receivable)
*intangible good
General Intangible
e. g., patent rights, software
* intangible good
Consignments
a transaction where an owner of goods/cosignor delivers goods to a merchant for the purpose of sale
When can a consignment be considered a SI?
if the inventory consignee is selling on consignment is difficult to distinguish from the inventory consignee actually owns
How is a SI created?
by contract (security agreement) between debtor and creditor
