Chapter 24 Notes

Chapter 24 Notes - Ch 24 Secured transaction any...

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Ch. 24 Secured transaction – any transaction in which the payment of a debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has a legal interest Article 9 covers personal property Secured party – a lender, seller, or any other person in whose favor there is a security interest Debtor – any party who owes payment Security interest – any interest in personal property or fixtures Collateral – subject of the security interest Financing statement – instrument normally filed to give public notice to third parties of the secured party’s security interest Creating a security interest 1. Can the debt be satisfied through the possession and sale of the collateral? 2. Will the creditor have priority over any other creditors or buyers who may have rights in the same collateral? Attachment – the process by which a secured creditor’s interest attaches to the property of another and the creditor’s security interest becomes enforceable Written or authenticated security agreement: When the collateral is not in the possession of the secured party Secured party must give value to the debtor Debtor must have rights in the collateral Perfecting a security interest Perfection – 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
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Chapter 24 Notes - Ch 24 Secured transaction any...

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