The flashcards below were created by user
chanthalyxay
on FreezingBlue Flashcards.
-
What are requirements to create a security interest
- 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
-
How to perfect a security interest
- 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
-
Who has priority to collateral when more than one creditor claims rights in the same collateral
first security interest to be perfected
-
Remedies on the debtor's default
- 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
-
What are the three different types of liens?
- Mechanic's Lien
- Artisan's Lien
- Judicial Lien
-
Define mechanic's lien: a nonpossessory, filed lien on an owner's real estate for labor, services, or materials furnished for making improvements on the realty
-
define artisan's lien: a possessory lien on an owner's personal property for labor performed or value added
-
what are two types of 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
-
Define garnishment
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)
-
what is creditors' composition agreement
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
-
Define Suretyship and Guaranty
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
-
What is exempt from creditors
family home
|
|