BADM*1030 Chapter : ACCOUNTING CH 12
Document Summary
Chapter twelve: secured transactions: collateral property of the debtor that can be seized and cold by a creditor if the debt is not paid; security. Property law: personal property is in turn divided into two types tangible, or concrete and intangible or notional, notional property exists as a concept; has no physical presence. Intangible property property that cannot be touched: all property has: ownership and possession. Giving credit and taking security: main concern is the borrower"s ability to repay debt. If however, the corporation defaults on its loan payments, the security attaches to the property, and the corporation can no longer sell the inventory fee and clear of security interest. Leases (financing: traditional lease ownership is never intended to be transferred to the lesee. Ignorance as a defence cannot be pleaded as if a lien is publically registered, it is enforceable.
