LAW 603 Chapter Notes - Chapter 23: Secured Creditor, Security Interest, Consignee
30 Oct 2017
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Debtor: if you promise to pay later to get something now. Creditor: the person who allows the time to pass before requiring you pay. Two main ways to manage risk: security interest: allows a creditor to seize some of a debtor"s personal property if a debt is not repaid. If the debtor agrees to pay a higher interest rate on the debt, the release the guarantor from liability. A kids used clothing store might take clothes on consignment from parents, offer them for sale and pay the parent a percentage of the purchase price if the clothes are sold. Granting a security interest in all of the debtor"s assets: general security agreement: provides a creditor with a security interest in all of the debtor"s assets. Also, s. 427 interests will always prevail over some other forms of security interests in the came collateral. Facilitating risk management for creditors the claims of other secured creditors in the same collateral.
