Business Law - Chapter 15

• creditor must posses the collateral or a written security agreement signed by the debtor and reasonably identifying the collateral
• secured party must give value to the debtor
• debtor must have rights in the collateral

• filing a financing statement that contains the names and addresses of the secured party and the debtor, and is signed by the debtor
• a few types of security interests can be perfected without filing

first security interest to be perfected

• repossess the collateral and retain it in part or full satisfaction of the debt
• sell or dispose of the collateral in any commercially reasonable manner.
• Judicial remedy

• Mechanic's Lien
• Artisan's Lien
• Judicial Lien

• Writ of attachment: a court order to seize a debtor's nonexempt property prior to a court's final determination of the creditor's rights to the property.
• writ of execution: a court order directing the sheriff to seize (levy) and sell a debtor's nonexempt real or personal property to satisfy a court's judgment in the creditor's favor

a collection remedy that allows a creditor to attach a debtor's funds and property that are held by a third person (wages paid by an employer)

a contract between a debtor and his/her creditors by which the debtor's debts are discharged by payment of a sum less than the amount actually owed

a third person agrees to be primarily or secondarily liable for the debt owed by the principal debtor. a creditor can turn to his third person for satisfaction of the debt

family home