Types of Collateral

Question 1

consumer goods

Answer 1

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

Question 2

equipment

Answer 2

used or bought for use in business; default or catch-all category

Question 3

farm products

Answer 3

crops or livestock or supplies used or produced in farming operations or products of crops or livestock in their manufactured states

Question 4

inventory

Answer 4

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 in a short period of time

Question 5

instruments

Answer 5

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

Question 6

documents

Answer 6

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

Question 7

chattel paper

Answer 7

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

Question 8

investment property

Answer 8

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

Question 9

accounts

Answer 9

a right to payment

Question 10

deposit accounts

Answer 10

an account maintained with a bank

Question 11

commercial tort claims

Answer 11

a claim arising in tort with respect to which (1) the claimant is an organization, or (2) 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`

Question 12

general intagngibles

Answer 12

any personal property not coming within the scope of other definitions; default/catch-all category for semi-intangible and intangible property