ST Flashcards
List the four types of Goods
- Consumer goods 2. Farm products 3. Inventory 4. Equipment
What are the types of collateral labeled as intangibles?
Documents Instruments Investment Property Chattel Paper Accounts Deposit Accounts Commercial Tort Claims General Intangibles
What is attachment?
Security interest is enforceable against the debtor is said to have attached to the collateral.
What are the three elements of attachment?
(1) Value given
(2) Debtor has rights in the collateral, and
(3) Debtor has authenticated a security agreement with description of the collateral OR secured party has possession or control of collateral pursuant to security agreement
What are the three requirements of a security agreement?
(1) Record (any tangible medium or electronic form)
(2) Description (by class … * can’t say all consumer goods, but can say all equipment)
(3) Authentication (signature)
What is perfection?
Generally gives the secured party superior rights in the collateral to an unperfected secured party (and possibly priority over other secured parties)
What are the four primary ways to perfect?
(1) Filing a financing statement (Required debtor’s name, Secured party name, and description of collateral);
(2) Possession of collateral;
(3) Control over collateral; or
(4) Automatic possession (either temporary or permanent)
Does a financing statement or security agreement have to be more specific with its description?
Security agreement must be more specific. Financing statement can be broad.
What is a Lender’s PMSI?
Secured party gives value to the debtor in order to enable the debtor to acquire right in or use the goods, and the value given was so used.
What is a Seller’s PMSI?
Secured party sold goods to the debtor, and the debtor incurs an obligation to pay the secured party all or part of the purchase price.
