Contracts - UCC Art 9 - Secured Transactions - Intro & Creation of Security Interests Flashcards Preview

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Flashcards in Contracts - UCC Art 9 - Secured Transactions - Intro & Creation of Security Interests Deck (12):
1

Define "chattel paper."

Writing(s) which evidence both a security interest in good(or software) and a monetary obligation to pay - example of a security agreement.

2

Describe the criteria necessary for a security interest attachment when the collateral is not in possession of the secured party.

1.Written or authenticated agreement describing collateral, signed or authenticated by the debtor;
2.Secured party must give debtor something of value;
3.Debtor must have rights in the collateral.

3

Define "security agreement."

Agreement which creates a security interest.

4

Define "attachment."

Time when security interest becomes valid: requires security agreement and debtor with interest in the property and creditor gives value.

5

Define "debtor."

The person who owes payment.

6

What type of property is subject to a security interest?

Personal property, Fixtures, Sales of accounts, Chattel, Paper, Promissory notes, General Intangibles.

7

Define "security interest."

The interest in the collateral which secures payment or performance of an obligation.

8

Describe when a creditor can have a valid oral security agreement.

When the creditor is in possession of the collateral.

9

Describe what happens to a security interest when a debtor has signed and executed a security agreement, but the collateral has not been shipped to the debtor from the seller.

The security interest does not attach until the debtor has an interest in the goods; i.e., identification has occurred.

10

Define "secured party."

The creditor who has a security interest in the debtor's collateral.

11

Define "intangibles."

Any personal property other than goods, accounts, chattel paper, documents, instruments, money, deposit accounts, letters of credit, and investment property - examples, oil or book royalties, patents, copyrights.

12

Define "collateral."

Subject of the security interest.