THE SECURITY AGREEMENT & “VALUE” GIVEN AND DEBTORS RIGHTS IN THE COLLATERAL Flashcards
Three factors for attachment
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
(1) value has been given;
(2) the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and
(3) one of the following conditions is met:
(A) debtor has authenticated a security agreement that provides a description of the collateral,
(B) the collateral is not a certificated security and is in the possession of the secured party,
(C) the collateral is a certificated security in registered form and the security certificate has been delivered to the secured party, or
(D) the collateral is deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights, and the secured party has control
Key Terms – Signed
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
The term signed includes using any symbol executed or adopted with present intention to adopt or accept a writing.
Key Terms – Writing
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
Writing includes printing, typewriting, or any other intentional reduction to tangible form. Written has a corresponding meaning.
Key Terms – Record
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
Record means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.
Key Terms – Authenticate
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
Authenticate means (A) to sign; or (B) with the present intent to adopt or accept a record, to attach to or logically associate with the record an electronic sound, symbol, or process.
Key Terms – Send
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
Send, in connection with a record or notification, means:
(A) to deposit in the mail, deliver for transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or
(B) to cause the record or notification to be received within the time that it would have been received if property sent under subparagraph (A).
Reasonable Identification of Collateral
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
A description of collateral reasonably identifies the collateral by:
(1) specific listing;
(2) category;
(3) a type of collateral defined in the UCC
(4) quantity;
(5) computational or allocational formula or procedure; or
(6) any other method if the identity of the collateral is objectively determinable
Meaning of “giving value”
The Security Agreement & “Value” Given and Debtors Rights In the Collateral
A person gives value for rights if the person acquires them:
(1) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon;
(2) as security for, or in total or partial satisfaction of, a preexisting claim;
(3) by accepting delivery under a preexisting contract for purchase; or
(4) in return for any consideration sufficient to support a simple contract.
