business law chapter 29

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tmoy4565
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296780
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business law chapter 29
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2015-02-27 01:27:26
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consumer law exam
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consumer and the law exam 1
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  1. After-acquired property
    Property of the debtor that is acquired after the execution of a security agreement.
  2. Attachment
    • 1. In the context of secured transactions, the process by which a security interest in the property of another becomes enforceable. 
    • 2. In the context of judicial liens, a court-ordered seizure and taking into custody of property prior to the securing of a judgement for a past-due debt.
  3. Authentication
    To sign a record, or with the intent to sign a record, to execute or to adopt an electronic sound, symbol, or the like to link with the record. A record is retrievable information inscribed on a tangible medium or stored in an electronic or other medium.
  4. Buyer in the ordinary course of business
    A buyer, who in good faith and without knowledge that the sale violates the ownership rights or security interest of a third party in the goods, purchases goods in the ordinary course of business from a person in the business of selling goods of that kind.
  5. Collateral
    The property subject to a security interest under Article 9 of the UCC.
  6. Continuation statement
    A statement that, in if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years.
  7. Cross collateralization
    The use of an asset that is not a subject of a loan to collateralize that loan.
  8. Debtor
    Under article 9 of the UCC, any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral.
  9. Deficiency judgment
    A judgement against the debtor for the amount of debt remaining unpaid after collateral has been repossessed and sold.
  10. Execution
    An action to carry into effect the directions in a court decree or judgement.
  11. Financing statement
    A document prepared by a secured creditor and filed with the appropriate government official to give notice to the public that the creditor claims an interest in collateral belonging to the debtor named in the statement.
  12. Floating lien
    A security interest in proceeds, after acquired property, or property purchased under a line of credit (or all three); a security interest in collateral that is retained even when the collateral changes in character, classification or location.
  13. Junior lienholder
    A person or business that holds a lien that is subordinate to one or more other liens on the same property.
  14. Levy
    The obtaining of money by legal process through the seizure and sale of property, usually done after a writ of execution has been issued.
  15. Perfection
    The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by the filing of a financing statement with the appropriate government official.
  16. Pledge
    A common law security device(retained in article 9 of the UCC) in which personal property is turned over to the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.
  17. Proceeds
    Under article 9 of the UCC, whatever is received when the collateral is sold or otherwise disposed of, such as by exchange.
  18. Purchase-money security interest(PMSI)
    A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.
  19. Secured Party
    A lender, seller, or any other person in whose favor there is a security interest, including a person to whom accounts or chattel paper has been sold.
  20. Secured transaction
    Any transaction in which the payment of a debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has legal interest.
  21. Security agreement
    An agreement that creates or provides for a security interest between the debtor and a secured party.
  22. Security interest
    Any interest, "In personal property or fixtures which secures payment or performance of an obligation"
  23. What are the three requirements that must be met for a creditor to have enforceable security interest?
    • 1. Unless the creditor has possession of the collateral, there must be a written or authenticated security agreement that clearly describes the collateral subject to the security interest and is signed or authenticated by the debtor.
    • 2. The secured party must give something of value.
    • 3. The debtor must have rights in the collateral
  24. To become a secured party, What must a creditor do?
    Obtain a security interest in the collateral of the debtor.
  25. T/F under the ucc, value  can include a binding commitment to extend credit.
    true
  26. When the collateral is not in the possession of the secured party, the security agreement must be either ________or__________.
    written or authenticated
  27. For something to become authenticated who's signature is required?
    only the debtor
  28. The secured party must give ______ to the debtor
    something of value
  29. T/F a debtor is not entitled to have some ownership in collateral
    False
  30. How is perfection accomplished?
    By filing a financing statement with the office of the appropriate official.
  31. What is the most common means of perfection?
    by filing a filing statement
  32. T/F A security agreement itself may also be filed to perfect the security interest.
    true
  33. communication
    The filing can be accomplished electronically
  34. Who must the financing statement be filed under?
    The debtor
  35. For corporations, the debtors name on the financing statement must be listed "_____"
    The name of the debtor indicated on the public record the debtors jurisdiction of organization"
  36. If the debtor on the financing statement is a trustee of the corporation with respect to eh property held in trust, what must be done
    the information must be disclosed
  37. T/F the debtors trade name in a financing statement is sufficient for perfection
    FALSE
  38. T/F In the security agreement, the collateral must be described
    true
  39. The state in which the filing statement depends on the location of _____________
    the debtor
  40. How is the debtor's location determined?(3)
    • 1. for an individual debtor it is the state in the individual debtors residence
    • 2.for a corporation, it is the state in which it is registered
    • 3.for all other entities it is the state in which the business is located or wherever the debtor manages its business practices
  41. security by possession
    Gaining security interest by being given the collateral
  42. How many types of security interests are perfected from the moment they are created?
    14
  43. the most common way to perfect a security interest
    pmsi
  44. What are the two ways pmsi's are not automatically perfected?
    • 1. When they are subject to federal and state laws that require more stuff
    • 2.nonconsumer goods such as inventory or livestock
  45. A financing statement is effective for______ years after filing
    five
  46. Are advances against lines of credit perfected?
    jah
  47. Who generally has priority when two companies have security interests for the same collateral?
    • whoever perfects first
    • or whoever files first if both are perfected
    • or if both unperfected, it is whoever attaches first
  48. exceptions to the general rule of security interests
    • buyers in the ordinary course of business
    • a psi that is filed after another psi
    • A pmsi in inventory has priority over a conflicting security interest in inventory

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