The Scope of Article 9 of the UCC Flashcards
1
Q
Who are the Article 9 cast of characters?
five
A
- Debtor: entity who OWES the money
- Secured Party/Creditor: entity who LENDS the money
- Security Agreement: the contract or RECORD
- Security Interest = the RIGHT that the creditor has in the debtor’s personalty or fixtures
- Collateral = the PERSONALTY or FIXTURES that a creditor can look to for satisfaction
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
- Consumer Goods: those used for personal or familial purposes (car, fridge, stove, etc.)
- Equipment: items used in business (cash registers, dentist chair, sewing machine, etc.)
- Inventory: goods held for sale or lease (i.e. merchandise)
- Farm products: crops, livestock, supplies used in farming, etc.
- Fixtures: items annexed to realty (lighting, sprinklers)
INTANGIBLE/SEMI-INTANGIBLE
6. IP; stocks/bonds; proceeds from collateral sales; accounts receivables; promissory notes