BUS 410 Study Guide - Final Guide: Security Interest, Secured Transaction, Secured Creditor

• School: Emory University
• Department: Business
• Course: BUS 410
• Professor: Burdette Allison

Document Summary

Transactions that are secured by personal property. 3 types of secured transactions: (1) pledge pledge an item for a loan. Get the item back when its paid back. Perfection automatic: (b) business related (inventory and equipment) must have a financing agreement. Consider: possession: automatic security interest is assumed. Pledges automatic because security interest is assumed because creditor has collateral: written security agreement describes collateral, creditor"s rights upon default (what creditor can do if it"s not paid back), debtor"s signature, debtor"s promise to repay. Legal process by which secured parties protect themselves against the claims of 3rd parties who may wish to have their debts satisfied out of the same collateral. Establishes the right of a secured creditor against other creditors who claim an interest in collateral: automatic or files a financing statement, consideration: do other potential creditors care, (a) possession of the collateral. A security interest in money and negotiable interest is almost always perfected by possession.