Applicability and definitions

Question 1

Article 9 of the UCC

Answer 1

Article 9 of the UCC applies to ANY transaction intended to create a security interest in personal property or fixtures (Not mortgages on real property). A security interest gives a creditor the right to sell a debtor’s property in order to satisfy a debt

Question 2

Collateral

Answer 2

Generally, in an article 9 transaction, personal property or fixtures secure the payment of a debt or insure performance of a contract obligation with the property serving as collateral

Question 3

Secured party

Answer 3

The secured party is the creditor who possesses the benefit of the the security interest

Question 4

Debtor

Answer 4

The debtor is the party who has an ownership interest or other sufficient interest in the personal property securing the obligation

Question 5

Obligor

Answer 5

The obligor is the party held responsible for the underlying obligation (Usually also the debtor, but could also be a type of guarantor)

Question 6

what are the different types of collateral?

Answer 6

Goods- things that are movable when a security interest attaches.

Consumer goods -Goods that are used mainly for personal, family or household purposes

Inventory - goods that are kept by a person for sale or lease

accounts - covers any right too payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be self (i.e accounts receivable)