Security Rights Flashcards
what are the pre-requisites for attachment?
- value has been given
- debtor retains some rights
- debtor has authenticated a security agreement reasonably describing collateral
Define attachment
the process by which security interest is created (made enforceable against debtor), by attaching to specific property called the collateral.
what is authentication?
signed by someone with authority to sign for debtor
what is a reasonable description of collateral
descriptions by general category Inventory Accounts General Intangibles Deposit Accounts Investment Property
what is perfection?
Process of making a security interest enforceable against third parties. Generally this is done by filing a UCC financing statement naming the debtor and creditor and describing the collateral. It need not be signed and it need not be filed in any particular clerks office.
What are corporeal movables owned by a business, that are not inventory going to be classified as?
equipment
are rental payments from a lease of immovable property governed by the UCC?
No.
How would a promissory note be categorized?
“Instrument”
How is a judgment classified?
“general intangibles”… but special rule for judgments is that they must be described specifically in the security agreement.
What is a balanced owed to corporation classified as?
An “Account”…. debtors rights to collect a money balance owed for merchandise or services is an account.
How may perfection of a vehicle be attained?
Perfection of an interest in a titled motor vehicle is only attained by filing a UCC-1 containing a more detailed description of vehicle
How are component parts classified?
as Fixtures, but that is not sufficient to maintain or perfect interest in component parts.
How is common stock classified?
“investment property”
How is a balance in a bank account classified?
as a “Deposit Account” This requires control over the account to be perfected!!**
Requirements re: PMSI and written notice
need info
