LAW 603 Lecture Notes - Lecture 4: Clark Equipment Company, Security Interest, Secured Creditor
1 Feb 2017
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Document Summary
Providing a proprietary interest (security interest) in a corporate asset to a lender is a prime means by which corporations and other business entities raise capital. This is a brief examination of the types and legal rights and risks associated with secured transactions. Debtor: the party obligated to make a future payment. Creditor: the party entitled to receive a future payment. Secured party: a creditor with a security interest. ; the secured party doesn"t own your asset, but he has a security interest" in it. Collateral: the particular debtor asset(s) that is the subject of the security interest. Guarantor: a third party who agrees to satisfy the debt of a debtor if the debtor defaults: the agreement to do so is a guarantee. Chattel mortgage: a transaction by which a debtor grants title to specific personal property to a creditor as security for a loan or other obligation; a loan document for personal property.
