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CHAPTER 30: SECURED TRANSACTIONS
Terms in this set (15)
______________________ Any transaction in which the payment of a debt is secured by the debtor's personal property or property that they have a legal interest in.
Personal Property example:
___________________ includes lender, seller, etc.
____________________ is a party that owes payment or performance to fulfill obligation
_____________________ is any interest "in personal property or fixtures which secures payment or performance of an obligation."
Debt that has been secured by some sort of ________________ that debtor owns
Debtor put up property as ________________; if they don't pay creditor can take it.
Creditor obtains a _________________ in the loan
In a Security Agreement,
The Debtor has _________________ in the collateral
The Secured Party has ________________ in the collateral
Three requirements must be met for a creditor to have an enforceable security interest:
1. Must be a Security Agreement that describes the collateral subject to the security interest.
2.The secured party must give the debtor something of value
3.The debtor must have property rights in the collateral
The secured party's "something of value includes"
-Commitment to extend credit
__________________ The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral.
With Perfection, the secured party files a ____________________ with the appropriate government official.
If a debtor has borrowed from two different creditors and used the same property as collateral for both loans, and the debtor defaults on both loans, the creditor with a _______________________ has first rights to the collateral.
perfected security interest
Rules of Priority
1. Creditor with perfected security interest has priority over creditor without perfected security interest.
2. With creditors who both DO have perfected security interest, creditor who perfected first has priority over creditor who perfected second.
3. With creditors who both DO NOT have perfected security interest, creditor who attached first has priority over creditor who attached second.
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