Types of Collateral

Question 1

Goods

Answer 1

Tangible. Moveable. Personal Property

Classification Further:

• Consumer Goods = Personal, Family
• Equipment = Primarily in business/default for goods
• Farm Products = Crops or livestock
• Inventory = Holds them for sale or lease/materials used or consumed in a business in short period of time

Looks to see how the DEBTOR is USING the collateral.

Question 2

8 Semi-intangible & intangible property

Answer 2

(1) Instruments = Checks, notes, promissory notes
(2) Docs = Special doc. gives person rights to possess like warehouse receipt, bill of lading
(3) Chattel paper = Prom Note W/Security Agreement
(4) Investment Property = Stocks, bonds, mutual funds, brokerage accounts
(5) Accounts = Right to payment mainly for goods or for services (Think Account Receivable)
* (6) Deposit Accounts = BANK Account (Art. 9 only applies to NONCONSUMER deposit accounts)
(7) Commercial tort claims = (i) claim arising in tort w/respect to which the claimant is an org OR (ii) 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 the death of an individual
(8) General Intangibles = Catch All category (IP stuff)