SU #18.7

Question 1

Goods

Answer 1

are fixtures and all things movable at the time a security interest attaches

Question 2

Tangible personal property

Answer 2

includes goods

Question 3

Semi-intangible collateral

Answer 3

is represented by an indispensable writing

1. Instruments
2. Documents
3. Tangible chattel paper
4. Investment property
5. Deposit accounts
6. Proceeds

Question 4

Security Agreement

Answer 4

Is a contract between the debtor and the secured party. it grants the secured party a security interest in the collateral.

Question 5

After-acquired property clause

Answer 5

creates an interest in most types of personal property to be acquired in the future. (Inventory)

Question 6

Future advances clause

Answer 6

extends the security agreement to future liabilities of the debtor to the secured party (continuing line of credit)

Question 7

Acceleration of payment clause

Answer 7

provides for the full amount of the debt to be due immediately upon default or within a specified period if a default is not cured

Question 8

Security Interest (Article 9)

Answer 8

is an interest in personal property or fixtures that secures payment or performance of an obligation. Fixtures are goods that are so closely related to real property that they are considered part of the real property. (Central heating system)

Question 9

(PMSI) Purchase Money Security Interest

Answer 9

arises when

1. a person obtains credit (borrows money)
2. The credit is used to acquire (purchase) property
3. That property serves as collateral to secure the obligation to satisfy the debt (repay the money borrowed)

Question 10

Attachment

Answer 10

occurs when it is enforceable against the debtor and the debtor has authenticated a security agreement that describes the collateral.

1. Enforcement
2. Authentication
3. Value
4. Debtor rights

Question 11

Authentication

Answer 11

Means signing (manually or electronically) or otherwise conforming that the identified person intends to accept the record of agreement. (Substitution for authentication)

1. the secured party has possession of the collateral
2. the secured party has control of collateral in the form of deposit accounts, electronic chattel paper
3. Investment property
4. The collateral is registered certificated security delivery to the secured party