types of collateral Flashcards
what are the tangible movable property
1) inventory
2) equipment
3) farm products (not tested)
inventory
goods held by a business for SALE/LEASE and any RAW OR CONSUMABLE MATERIALS (eg: floor, sugar, chemicals, cleaning supplies
equipent
catch all, any tangible property owned by a BUSINESS not within another category
consumer goods
1) used for
2) PRIMARY for personal, family, or household use
when do you look at the primary purpose for consumer goods
primary intended use at time when SECURITY INTERESTED GRANTED
is real property covered under secured transactions
NO
fixtures
any MOVEABLE thing that is so incorporated into (affixed to) an immovable that it becomes part of the realty under property law
as-extracted collateral
rights in oil and gas and other minerals reserved b4 extraction so that the security interest will attach to the oil etc, as soon as it is extracted
what are the 6 intangible rights
1) accounts (recievabels)
2) deposit accounts
3) instrument
4) chattel paper
5) investment property
6) general intangibles
accounts (reciverables)
right to collect on a PROMISE TO PAY THE DEBTOR later on a monetary obligation after SALE OR LEASE of a non-land related thing
deposit accounts (bank accounts)
bank promise to give you back money you put on deposit
does consumer accounts cover UCC 9
NO. only commercial deposit accounts are governed by UCC 9
instrument
promise to pay memorialized in a note or certiicate of deposit
chattel paper
paper representing BOTH a
1) promise to pay AND
2) a property right
what are the 2 most common chattel paper
1) LEASE of a moveable
(right to collect future rent + reversionary right) and
2) RETAIL installment sale agreement (promissory note + security agreement)
