Flashcards in Contracts - UCC Art 9 - Secured Transactions - Intro & Creation of Security Interests Deck (12):
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.
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.
Define "security agreement."
Agreement which creates a security interest.
Time when security interest becomes valid: requires security agreement and debtor with interest in the property and creditor gives value.
The person who owes payment.
What type of property is subject to a security interest?
Personal property, Fixtures, Sales of accounts, Chattel, Paper, Promissory notes, General Intangibles.
Define "security interest."
The interest in the collateral which secures payment or performance of an obligation.
Describe when a creditor can have a valid oral security agreement.
When the creditor is in possession of the collateral.
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.
Define "secured party."
The creditor who has a security interest in the debtor's collateral.
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.