Secured Transactions Flashcards Preview

Regulation > Secured Transactions > Flashcards

Flashcards in Secured Transactions Deck (15):
1

Attachment

when security interest becomes enforceable against debtor. takes place when value is given, the debtor has rights in the collateral and one of the following is true: (1) secured party possesses the collateral (2) secured party has control of collateral or (3) the secure party has a signed security agreement

2

Collateral

property subject to a security interest

3

Consumer goods

type of collateral that was purchased for personal use

4

Debtor

party in a secured transaction who owes an obligation to the secured party

5

Default

when the debtor fails to make scheduled payment to a secured party allows the secured party to take action against the collateral

6

Equipment

type of collateral that was purchased for business use

7

Financing statement

document filed with the state government that perfects security interest in collateral

8

Floating lien

security interest in the future inventory or equipment that the debtor acquires

9

Inventory

collateral that was purchased for resale

10

Perfection

when the secured party's security interest is enforceable against third parties (cannot occur before attachment)

11

Pledge

when the secured party perfects by taking possession of the collateral

12

Purchase money security interest (PMSI)

arises when secured party extends credit to a debtor to purchase a specific good and takes security interest in that specific good

13

secured party

creditor who receives a promise from the debtor to repay a debt, and provides collateral to ensure repayment of debt

14

Security agreement

contract between debtor and secured party, which creates security interest in the collateral

15

security interest

interest in the collateral that helps to assure repayment of debt