The Scope of Article 9 of the UCC

Question 1

Who are the Article 9 cast of characters?

five

Answer 1

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

Question 2

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

tangible and semi/intangible

Answer 2

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