Secured Transactions Collateral

Question 1

Collateral - Goods

Answer 1

Includes all things that are movable at the time the security interest attaches
- This generally includes fixtures and computer programs embedded in goods in computers
- “Goods” are further broken down into several categories depending on in what capacity and how the debtor primarily uses them

Question 2

Collateral - Goods (consumer goods)

Answer 2

Goods used or bought primarily for personal, family, or household purposes

Question 3

Collateral - Goods (inventory)

Answer 3

Goods, other than farm products, that are held for sale or lease or to be furnished under a contract of service
- Inventory also consists of raw materials, work in process, or materials used or consumed in business

Question 4

Collateral - Goods (farm products)

Answer 4

goods, other than standing timber, with respect to which the debtor is engaged in a farming operation
- including crops, livestock, products of crops or livestock in their unmanufactured state, aquatic goods produced in aquacultural operations, and supplies used or produced in a farming operation

Question 5

Collateral - Goods (equipment)

Answer 5

Goods “other than inventory, farm products, or consumer goods”
- This term usually refers to goods that are used or bought for use primarily in a business

Question 6

Collateral - Tangible Intangibles

Answer 6

Certain intangibles, such as contractual obligations to hold or deliver goods or to pay money, and ownership in goods or business entities, are commonly reduced to tangible or written form; by transferring the writing, the intangibles are transferred

Question 7

Collateral - Tangible Intangibles (instruments)

Answer 7

Negotiable instruments or any writing that evidences a right to the payment of a monetary obligation but is not itself a security agreement or lease
- drafts and notes

Question 8

Collateral - Tangible Intangibles (documents)

Answer 8

Documents of title that, in regular course of business/financing, is treated as adequately evidencing that the person in possession is entitled to receive, hold, or dispose of the document & goods into covers
- bills of lading, dock receipts, warehouse receipts, delivery orders
- Must purport to be issued by, or addressed to, a Bailee & purport to cover goods in the Bailee’s possession that are either identified or fungible portions of an identified mass

Question 9

Collateral - Tangible Intangibles (chattel paper)

Answer 9

Record evidencing monetary obligation & an SI in or a lease of specific goods

Question 10

Collateral - Intangible Intangibles

Answer 10

Intangibles where writing takes on no commercial significance
- General: fails to fit any other category
- Accounts: rights to payment of a monetary obligation, generally for property sold or to be sold, or for services rendered or to be rendered

Question 11

Collateral - Investment Property

Answer 11

Certified/uncertified securities, securities accounts, & entitlements