LEGL 226 Chapter Notes - Chapter 24: Security Interest, Secured Transaction, Financial Statement
Document Summary
Article 9 of the uniform commercial code (ucc) governs secured transactions in personal property. Fixtures- goods that have become attached to real estate. Security investment- an interest in personal property or fixtures that secures the performance of some obligation. Secured party-the person or company that holds the security interest, example- the automobile dealer who sells you a car on credit is the secured party. Collateral- the property subject to a security interest. Debtor- a person who has some original ownership interest in the collateral. Obligator- a person who must repay money, or perform some other task. Security agreement- the contract in which the debtor gives a security interest to the secured party. This agreement protects the secured party"s rights in the collateral. Default-occurs when the debtor fails to pay money that is due, for example, on a loan or for a purchase made on credit.
