Types of Collateral

Question 1

Goods

Answer 1

All tangible, moveable, personal property

Question 2

Consumer goods

Answer 2

1) used or bought

2) for use primarily for personal, family, or household purposes

Question 3

Equipment

Answer 3

1) used or bought
2) for use primarily in business
3) default if good doesn’t fit in anywhere else

Question 4

Farm Products

Answer 4

1) crops or livestock or supplies
2) used or produced in farming operations
3) or products of crops or livestock in their unmanufactured states
4) if they are in the possession of a debtor engaged in farming operations (look for the farmer)

Question 5

Inventory

Answer 5

1) held by a person for sale or lease OR to be furnished under service contracts
2) materials used or consumed in a business for a short period of time (office supplies/consumables)

Question 6

Instruments

Answer 6

1) negotiable instruments and any other writing
2) which evidences a right to the payment of a monetary obligation
3) and which are in the ordinary course of business
4) transferred by delivery with any necessary indorsement or assignment
EXAMPLES: promissory notes, checks, cash

Question 7

Documents

Answer 7

a document which in the regular course of business is treated as evidencing that the person in possession of it is entitled to receive, hold, and dispose of the document and the goods it covers
EXAMPLES: bill of lading, warehouse receipt

Question 8

Chattel Paper

Answer 8

1) records which evidence both (a) a monetary obligation and (b) security interest in or lease of specific goods
2) can be tangible or electronic

Question 9

Investment Paper

Answer 9

1) Stocks, bonds, mutual funds

2) brokerage accounts with the previous items

Question 10

Accounts

Answer 10

1) a right to payment for goods, services, real property, policy of insurance issued or to be issued, use or hire of a vessel, lottery winnings, ect.
2) contractual obligation arising from a loan of money is NOT an account, it is a general intangible

Question 11

Deposit Accounts

Answer 11

1) An account maintained with a bank

2) A9 only applies to nonconsumer deposit accounts and deposit accounts that are claimed as proceeds of other collateral

Question 12

Commercial Tort claims

Answer 12

1) a claim arising out of tort with respect to which the cliamant is an organization
2) or where the claimant is an individual and the claim arose in the claimant’s business or profession and does not include damages for personal injury or death

Question 13

General Intangibles

Answer 13

1) catch-all default category
2) any personal property not coming within the scope of other definitions (think IP)
3) A general intangible under which the account debtor’s principal obligation is a monetary obligation