Secured Transactions Outline
Five Main Topics
What is the SCOPE of Article 9? applies to consensual security interest in
personalty and fixtures (i.e., your jewelry collection)
How does a creditor create an enfor
...
Secured Transactions Outline
Five Main Topics
What is the SCOPE of Article 9? applies to consensual security interest in
personalty and fixtures (i.e., your jewelry collection)
How does a creditor create an enforceable security interest in the debtor’s
collateral, meaning, how does the creditor ATTACH? V.C.R – Value / Contract /
Rights in the collateral
Once attached, how does the creditor attain PERFECTION? by Publicizing, by
putting the world on notice of its existence.
When more than one creditor has a stake in the same collateral, what are the rules
of PRIORITY? generally, first in time, first in right.
What if the debtor DEFAULTS on the debt or obligation? Art 9 lender had
statutory and judicial remedies.
SCOPE of Article 9
Applies to consensual security interest in personalty or fixtures
When collateral is real estate, apply the law of mortgages!!
In general, personalty equals goods. Remember that Art 9 only applies to
voluntary or consensual collateralizations. Thus, it does NOT apply to statutory or
mechanics liens.
Article 9 cast of characters:
o Debtor – the entity that owes the money
o Secured party or secured creditor – the entity who lends the money
o Security agreement – the contract or record
o Security interest – the right creditor has in debtor personalty or fixture
o Collateral – personalty or fixtures the creditor can look to for satisfaction
Collateral could be:
o Tangible goods such as:
Consumer goods
Equipment
Inventory (crops, livestock)
Fixtures
The key for the purposes of classifying tangible collateral –
primary use in the hands of your debtor (subjective test)
o Intangible or semi-intangibles such as:
Patents, trademarks, copyrights, stocks, bonds, mutual funds
(including proceeds from the sale of collateral), accounts,
promissory notes and drafts.
Creation of an enforceable security interest: ATTA
[Show More]
.png)
.png)
