Collateral Flashcards
What does collateral?
Collateral is the personal property that is subject to the lien.
How is collateral classified?
Collateral is classified depending on the principal use of the gutter. It is determined when the security interest is created, and a classification can change over the lifetime of the property.
What are the two types of collateral?
Tangible collateral (goods) and other collateral (non-goods).
What is a consumer good?
A good purchased for personal, family, or household use.
What is a farm product?
Crops or livestock owned by a farmer.
What is inventory?
Inventory is goods held for sale or lease, or used or consumed in a business.
What is equipment?
Equipment is good for used primarily in a business (like machinery or office furniture).
What is an account?
The right to payment for property sold, least, or licensed, or for service is rendered.
What is a negotiable instrument?
Commercial paper, such as a promissory note or check.
What is chattel paper?
A record evidencing a security interest or lease.
What is a deposit account?
Savings and checking account.
What are documents?
Document includes documents of title, bills of lading, and warehouse receipts.
What is investment property?
Include stocks, bonds, and mutual funds.
Can tort claims of a business be considered collateral?
Yes
What are general intangibles?
Copyrights, patents, or software not embedded within a good.
