The Scope of Article 9 of the UCC Flashcards

1
Q

Who are the Article 9 cast of characters?

five

A
  1. Debtor: entity who OWES the money
  2. Secured Party/Creditor: entity who LENDS the money
  3. Security Agreement: the contract or RECORD
  4. Security Interest = the RIGHT that the creditor has in the debtor’s personalty or fixtures
  5. Collateral = the PERSONALTY or FIXTURES that a creditor can look to for satisfaction
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2
Q

What are the 6 types of collateral under Art. 9?

tangible and semi/intangible

A

TANGIBLE

Note: key test is primary use in hands of your debtor

  1. Consumer Goods: those used for personal or familial purposes (car, fridge, stove, etc.)
  2. Equipment: items used in business (cash registers, dentist chair, sewing machine, etc.)
  3. Inventory: goods held for sale or lease (i.e. merchandise)
  4. Farm products: crops, livestock, supplies used in farming, etc.
  5. Fixtures: items annexed to realty (lighting, sprinklers)

INTANGIBLE/SEMI-INTANGIBLE
6. IP; stocks/bonds; proceeds from collateral sales; accounts receivables; promissory notes

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