Types of Collateral

Question 1

“Goods” include:

Answer 1

all thing which are tangible, movable and personal property.

All things which are movable at the time the security interest attaches, and include the unborn young of animals and growing crops.

Goods also include fixtures.

Question 2

What are the 4 classifications of goods?

Answer 2

(1) consumer goods
(2) equipment
(3) farm products
(4) inventory

Note: look to see how the debtor is using the collateral..

Question 3

Used or bought for use primarily for personal, family or household purposes.

Answer 3

Consumer Goods

Question 4

Used or bought for use primarily in business.

Answer 4

Equipment

Question 5

Crops or livestock or supplies used or produced in farming operations or products of crops or livestock in their unmanufactured states if they are in the possession of a debtor engaged in farming operations.

Answer 5

Farm Products

Question 6

Held by a person who holds them for sale or lease or to be furnished under service contracts; materials used or consumed in a business.

Answer 6

Inventory

Question 7

Negotiable instruments and any other writing which evidences a right to the payment of a monetary obligation, and which are in the ordinary course of business transferred by delivery with any necessary indorsement or assignment (does not include investment property).

Answer 7

Instruments

Question 8

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.

Answer 8

Document

Question 9

A record or records which evidence both a monetary obligation and a security interest in or a lease of specific goods.

Answer 9

Chattel paper

Note:

A record is information that is stored in either a tangible medium or an intangible medium.

Chattel paper that is stored in an electronic medium also is called electronic chattel paper.

Question 10

Includes items such as stocks, bonds, mutual funds, and brokerage accounts containing such items.

Answer 10

Investment property

Question 11

A right to payment (not evidenced by an instrument or chattel paper): (1) for goods, (2) for services, (3) for real property, (4) for a policy of insurance issued or to be issued (5) for a secondary obligation incurred or to be incurred (6) for energy provided or to be provided (7) for the use or hire of a vessel (8) arising out of the use of a credit card or (9) as lottery winnings.

Health care insurance receivables are included.

Answer 11

Accounts

Question 12

A contractual obligation arising from a loan of money is not:

Answer 12

an account

Question 13

An account maintained with a bank.

Answer 13

Deposit accounts

Article 9 only applies to nonconsumer deposit accounts and deposit accounts that are claimed as proceeds of other collateral.

Question 14

A claim arising in tort with respect to which the claimant is an organization 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 the death of an individual.

Answer 14

Commercial tort claims

Question 15

Any personal property not coming within the scope of the other definitions (software, patent and trademark rights, copyrights, goodwill).

Answer 15

General intangibles

A general intangible under which the account debtor’s principal obligation is a monetary obligation is a payment intangible.

Question 16

5 Things Article 9 Applies To

Answer 16

(1) any transaction, regardless of its form, that creates a security interest in personal property or fixtures by K;
(2) an agricultural lien;
(3) a sale of accounts, chattel paper, payment intangibles, or promissory notes (unless the sale is for the purposes of collection only, or the sale is part of the sale of a business);
(4) certain consignments;
(5) a secured sale disguised as a lease.