Article 9 Scope & Definitions Flashcards
(19 cards)
Scope of Article 9
Applies to transactions that create a security interest in personal property by contract
Secured Transaction
A transaction that creates a security interest in personal property
Security Interest
An interest in personal property which secured payment or performance of an obligation
Secured Creditor
A creditor that has a valid security interest
Unsecured Creditor
A creditor that does not obtain a security interest
Security Agreement
An agreement that creates or provides for a security interest
Collateral
The property subject to the security interest
What are the different types of collateral?
- Goods
- Accounts
Secured Party
A person in whose favor a security interest is created or provided for under a security agreement
Debtor
A person having an interest in the collateral
Obligor
A person that owes payment or other performance of the obligation
Goods
All things that are moveable when a security interest attaches
What are the 4 subcategories of goods?
- consumer goods
- inventory
- farm products
- equipment
Consumer Goods
Goods that are used or bought for use primarily for personal, family or household purposes
Inventory
goods that are:
- leased by a person as lessor
- held by a person for sale or lease or to be furnished under a contract of service
- are furnished by a person under a contract of service
- consist of raw materials, work in process, or materials used or consumed in a business
Equipment
Goods used for the operation of the business
Account
Right to payment for monetary obligation for:
- property that has been or is to be sold, leased, etc.
- services rendered or to be rendered
Purchase-money collateral
goods that secure a purchase money obligation incurred with respect to that collateral
purchase money obligation
an obligation of an obligor incurred as all or part of the price of the collateral
