BUS-294 Chapter Notes - Chapter 19: Public Auction, Security Interest, Repossession
23 Sep 2020
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It is a transaction in which the payment of the debt is guaranteed by personal property owned by the debtor. Secured interest: usually given in the case of goods; Will usully be in writing and signed by debtor. Must indicate that the parties intend to create a security agreement and interest in collateral. Usually, the debtor will own the goods or property. Someone who obtains goods by fraud or steals them cannot give a valiv security interest. Attached/attachment: having the security agreement drawn up and filing the financing statement. There must be a security agreement which the debtor has signed describing the collateral or secured party has possession or control of the collateral. The secured party must have given value to obtain the security agreement. The debtor must have some rights in the collateral. Control: secured party has exclusive right to dispose of collateral; often used in cases where deposits in a bank, chattel paper, or investment paper is involved.
