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UCC Title 9
Security Interest
An interest in personal property or fixtures that secures payment or performance of a obligation.
Possessory Secured party takes possession of collateral. Nonpossessory Use Security Agreement.
Security Agreement
The agreement of the debtor and creditor that the creditor shall have a security interest in designated collateral.
In writing Signed by debtor Describe the collateral in reasonable detail
Secured Loan Transaction : No sale involved. Creditor lends money and takes a security interest in property owned by borrower/debtor
Types of Collateral
Goods: Consumer Goods / Inventory / Equipment
Attachment
Point at which the security interest becomes effective between debtor and creditor.
Require: a. Secured party has a signed security agreement describing the collateral possession of collateral pursuant to an agreement with debtor. b. Creditor has given value c. Debtor has property rights in collateral
Perfection
Perfection occurs by filing a financing statement with the appropriate public official according to state law
Financing Statement
Varies according to state law.
Generally Includes:
Names and addresses or parties Description of collateral Signature of debtor
Priority
Perfected security interests take priority over nonperfected interests. Between perfected interests priority is determined by time of perfection.
Duration
A filed financing statement is effective for fine years from the date of filing.
A continuation statement may be filed within six months prior to the expiration of the five year period to extend for an additional five years.
Duration
Interstate change of location
Original filing is valid until perfection would have expired under the laws of the first state or four months, whichever occurs first.