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sandeec45
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Attachment
When the secured party's security interest becomes enforceable against the debtor.
Collateral
Property that is subject to ta security interest. It is used to help assure a secured party that the debt will be repaid.
Consumer Goods
A type of collateral that was purchased for personal use.
Debtor
The party in a secured transaction who owes an obligation to the secured party.
Default
When the debtor fails to make scheduled payment to a secured party. When this occurs it allows the secured party to take action against the collateral.
Equipment
A type of collateral that was purchased for a business use.
Financing Statement
A document filed with the state government that perfects security interest in collateral.
Floating Lien
A security interest in the future inventory or equipment that the debtor acquires.
Inventory
A type of collateral that was purchased for resale.
Perfection
When the secured party's security interest is enforceable against third parties. Perfection cannot occur before attachment.
Pledge
When the secured party perfects by taking possession of the collateral.
Purchase money security interest (PMSI)
Arises when the secured party extends credit to the debtor to purchase a specific good. The secured party takes a security interest in that specific good.
Secured party
A creditor who receives a promise from a debtor to repay a debt and the debtor also provides collateral to assure repayment of the debt.
Security agreement
The contact between the debtor and secured party, which creates a security interest in the collateral.
Security interest
The interest in the collateral that helps to assure repayment of the debt.