Chapter 30

Whenever the payment of a debt is guaranteed, or secured, by personal property owned or held by the debtor, the transaction becomes known as a ... ....

Any creditor who has a security interest in the debtor's collateral. This creditor can be a seller, lender, cosigner, or even a buyer of accounts or chattel paper.

This is the party who owes payment or other performance of a secured obligation

This is the interest in the collateral (such as personal property, fixtures, or accounts) that secures payment or performance of an obligation

This is an agreement that creates or provides for a security interest.

This is the subject of the security interest

This is the instrument normally filed to give public notice to third parties of the secured party's security interest. AKA the UCC-1 Form.

Once requirements are met, the creditor's rights are said to attach to the collateral. This gives the creditor an enforceable security interest in the collateral.

This means to sign or, on an electronic record, to adopt any symbol that verified that intent to adopt or accept the record.

This is 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.

This is usually accomplished by filing a financing statement.

Under the UCC there are 14 types of security interest that are perfected automatically at the time they are created. This is the most common.

In consumer goods, it is created when a seller or lender agrees to extend credit to a buyer for part of all of the purchase price of the goods in a sales transaction.

If this is filed within six months prior to the expiration date of a financing statement, the effectiveness of the original statement is continued for another five years.

The cash or property received when collateral is sold or disposed of in some other way.

This is property that the debtor acquires after the execution of the security agreement.

This occurs when an asset that is not the subject of a loan is used to collateratlize that loan.

A security agreement that provides for a security interest in proceeds, in after-acquired property, or in collateral subject to future advances by the secured party is often characterized as this. This type of security interest continues in the collateral or proceeds even if the collateral is sold, exchanged, or disposed of in some other way.

This is the implementation of a court's decree or judgment.

This is the legal process of obtaining funds through the seizure and sale of nonexempt property, usually done after a writ of execution has been issued.

This is a party holding a lien that is subordinate to one or more other liens on the same property.

Unless otherwise agreed, the debtor normally is liable for any deficiency, and the creditor can obtain this from a court to collect the deficiency.