After reading this chapter, you will be able to answer the following questions: What are the important definitions associated with secured transactions? How are secured interests created? How are secured interests perfected? What is the scope of a security interest? How are disputes regarding priority handled? What is default? | Chapter 30 Secured Transactions Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 30: Secured Transactions 30- Secured Transactions: Definitions Secured Interest: Interest in personal property/fixtures that secures payment/performance of obligation Secured Party: Person/party that holds interest in secured property Debtor: Person/party that has obligation to secured party Security Agreement: Agreement in which debtor gives secured interest to secured party Collateral: Property that is subject to security interest With regard to secured transactions, a “secured interest” is an interest in personal property or fixtures that secures payment or performance of an obligation. A “secured party” is a person or party that holds an interest in secured property. A “debtor” is a person or party that has an obligation to the secured party. A “security agreement” is an agreement in which the debtor gives a secured interest to the secured party. “Collateral” is property that is subject to a security interest. 30- Collateral Under UCC Goods (Consumer goods, farm products, inventory, equipment, fixtures, and accessories) Indispensable Paper (Documents of title, negotiable instruments, investment property, and chattel paper) Intangibles (Accounts, goodwill, literary rights) Proceeds Types of collateral recognized by the UCC include goods (consumer goods, farm products, inventory, equipment, fixtures, and accessories;) indispensable paper (documents of title, negotiable instruments, investment property, and chattel paper;) intangibles (accounts, goodwill, and literary rights;) and proceeds. 30- Creation (Attachment) of Security Interest Requires: Written Agreement: Agreement that describes collateral and is signed by debtor Value: Item of value given from creditor to debtor Debtor Rights in Collateral: Rights of debtor over collateral The creation | Chapter 30 Secured Transactions Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 30: Secured Transactions 30- Secured Transactions: Definitions Secured Interest: Interest in personal property/fixtures that secures payment/performance of obligation Secured Party: Person/party that holds interest in secured property Debtor: Person/party that has obligation to secured party Security Agreement: Agreement in which debtor gives secured interest to secured party Collateral: Property that is subject to security interest With regard to secured transactions, a “secured interest” is an interest in personal property or fixtures that secures payment or performance of an obligation. A “secured party” is a person or party that holds an interest in secured property. A “debtor” is a person or party that has an obligation to the secured party. A “security agreement” is an .
