Whose Party is it, Anyway?
A creditor whose risk is reduced by obtaining an interest in something of value to be acquired in case of default is this.
Secured party.
When securing a transaction between a creditor and a non-business individual, this type of collateral cannot be listed categorically.
Consumer goods.
This document, used to reduce a creditor's risk, requires the assent (usually a signature) of the person with an alienable ownership interest in the subject assets.
Security agreement.
If a sufficient financing statement is filed prior to a security agreement being properly executed, perfection occurs at this time.
Proper execution of the security agreement.
Between perfected secured parties, priority is enjoyed by the first party to do either of these two things.
File or perfect.
Under Article 9, the primary person or entity responsible for paying back a loan, either secured or unsecured, and if secured by collateral may or may not have an ownership interest in the collateral.
Obligor.
Goods used or produced in farming operations, including unborn animals and ungrown crops but excluding standing timber.
Farm products.
This document must include the debtor's legal name and sufficient identification of the secured party and subject collateral to be valid, and must be filed with the appropriate state registry to obtain perfection by filing.
Financing statement.
In general, a financing statement is valid for this period before becoming unperfected.
Five years.
The priority of an unperfected secured party whose security interest attached before a perfected secured party's interest attached to the same collateral is this.
Subordinate.
This party serves as a backup obligor, bound to repay a debt if the primary obligor defaults.
Guarantor.
This collateral category consists of "permanent" goods not subject to depletion that are used to conduct non-farming business over time.
Equipment.
When executing a security agreement, in addition to sufficient collateral identification and the debtor's signature, this must exist for a security interest to attach.
Value given by the creditor.
To maintain perfection in security interest via financing statement, a continuation must be filed within this window unless perfection is obtained by other means.
Six months prior to expiration.
Secured party B.
This third party has no ownership interest in collateral, but perfects a secured party's interest irrespective of filing when it takes possession of attached collateral, so long as it is distinct and separate from the debtor granting the interest.
Bailee.
Due to necessary fluctuation in the regular course of business, these two types of collateral are assumed to include then-owned and after-acquired assets when a security interest is granted, unless the security agreement specifies otherwise.
Accounts and inventory.
A creditor's interest in collateral procured by credit extended for the purpose of acquiring the subject collateral.
Purchase-money security interest (PMSI).
The grace period during which a security interest in existing or newly acquired subject collateral remains perfected for a change to the debtor's name or jurisdiction, after which the interest becomes unperfected unless an amendment is timely filed for name changes or a new financing statement is filed in the appropriate jurisdiction for relocation.
Four months.
Among unperfected security interests, the first party that did this enjoys priority.
Attach.
Under Article 9, this person or entity, whose assent is necessary for attachment and whose legal name is required for perfection by filing, holds an ownership interest in collateral offered for a creditor's security, though they may not be the recipient of the credit or required to repay it.
Debtor.
When collateral that has a security interest attached is alienated, the secured party is generally entitled to this resulting asset.
Identifiable proceeds.
A security interest is perfected irrespective of filing when accomplished by the secured party or a third party distinct and separate from the debtor.
Possession.
When alienation of collateral attached to a perfected security interest results in identifiable cash proceeds subsequently used to acquire new collateral, the security interest in the new collateral lapses after this period of time unless an amendment identifying the new collateral is filed before the interest becomes unperfected.
Twenty days.
A party whose possession of goods overcomes a secured party's perfected interest in said goods, provided the interest was granted by the party who transferred ownership.
Buyer in the ordinary course of business.