MGT 2106 Lecture Notes - Lecture 21: Security Interest, Secured Transaction, Promissory Note
Document Summary
Chapter 21 security interests and creditor rights. Article 9 of the ucc governs secured transactions. Whenever the payment of a debt is guaranteed, or secured, by property owned by a debtor or in which the debtor has a legal interest, the transaction becomes known as a secured transaction. Explain how collateralization facilitates the creation of loans which would otherwise not occur. Explain security interest stays with the property no matter who owns it. Security interest the interests in the collateral that secures payment of the obligation. Security agreement agreement that creates the security interest. Financing statement ucc-1, form filed to give public notice to third parties of the secured party"s security interest. Property goes into the possession of secured party or create written security agreement. Debtor must have rights in collateral i. e. , make improvements to it as the debtor sees fit.
