Types of collateral

Question 1

Goods

Answer 1

Anything movable at the time the SI attaches.

Question 2

Types of Goods

Answer 2

CONSUMER GOODS - goods used or bought primarily for personal, family, or household purposes.

INVENTORY - Goods (except farm products) held for sale or lease, or furnished under a contract for service (e.g., raw materials, work in progress, or business materials).

FARM PRODUCTS - Goods, other than standing timber, used in a farming operation.

EQUIPMENT - Goods other than consumer goods, inventory, or farm products (catch-all category).

Question 3

What are Tangible Intangibles?

Answer 3

Certain intangibles reduced to writing that can be transferred by the writing (e.g. contractual obligations)

Question 4

Types of Tangible Intangibles

Answer 4

INSTRUMENTS - Negotiable instruments that evidence a right to payment of money. The writing must be of the type used in the ordinary course of business with the necessary endorsement or assignment.

DOCUMENTS OF TITLE - Any doc used in regular course of business or financing that evidences the person in possession is entitled to the goods covered by the doc.

CHATTEL PAPER - A record evidence both a monetary obligation and a security interest in, or a lease of, specific goods.

Question 5

Intangible Intangibles

Answer 5

General Intangibles - Intangible collateral that doesn’t fit in any other category.

Accounts - Right of payment of a monetary obligation.

Question 6

Investment Property as Collateral

Answer 6

Certificated and uncertificated securities, securities accounts, and entitlements, as defined in UCC Art. 8

Question 7

Proceeds as Collateral

Answer 7

+ Collateral in the form of proceeds obtained from the disposition of other collateral.

+ Proceeds are either cash or non-cash (e.g. account receivable).