Types of Collateral Flashcards
What are the 4 types of tangible collateral (goods)?
1) consumer goods
2) equipment
3) farm products
4) inventory
What are the broad categories of collateral?
1) goods (tangible)
2) intangible or semi-intangible
Key question for tangible collateral?
How is debtor using the collateral?
What are consumer goods (TC)?
goods used or bought mainly for personal, family, or household purposes
What is Equipment (TC)?
goods used or bought for use in a business; acts as “catch-all” for tangible collateral
What are Farm Products (TC)?
crop/livestock/supplies used or produced in farming operations IF in possession of person engaged in farming
What are the 8 types of intangible/semi-intangible collateral?
1) instruments
2) documents
3) chattel paper
4) investment property
5) accounts
6) deposit accounts
7) commercial tort claims
8) general intangibles
What is Inventory (TC)?
Goods held for sale/lease, goods to be furnished under service contracts, AND materials used/consumed in a business in a short period of time
Key question for intangible/semi-intangible collateral?
What is the nature of the collateral?
What are Instruments?
right to money; pieces of paper representing right to be paid money
What are Documents?
right to receive goods
What is Chattel Paper?
record(s) which evidence both 1) monetary obligation AND 2) security interest in or a lease of specific goods
What is Investment Property?
includes items like stocks, bonds, mutual funds, and brokerage accounts with such items
What are General Intangibles?
any personal property beyond scope of other definitions (usually IP); serves as “catch-all”
What are Accounts?
right to payment for property sold or services rendered (basically accts. receiv.); NOT bank accounts
