Secured Transactions Financing Statements

Question 1

Security Agreement

Answer 1

Creates/provides for SI in certain collateral
- Must be in writing & authenticated by the debtor
- Must contain a granting clause
- need not be formal or in same document

Question 2

Security Agreement - Possession

Answer 2

Where secured party has possession, only need agreement which can be oral, that secured party is to have an SI

Question 3

Purchase-Money Security Interest

Answer 3

Pertains to goods that secure an obligation as to all/part of the price of the collateral, or for value given to enable the debtor to acquire rights in or use of the collateral, if the value is in fact so used
- Must be for goods that are given as collateral for an obligation the debtor incurred for the purchase of goods & actually was used to buy those goods

Question 4

Creation

Answer 4

Two steps:
- Written security agreement/possession of collateral by secured party w/ intent to secure
- attachment of SI to the collateral