Barbri Secured Transactions Questions and Answers

Secured Transactions - Source of Law? Ans- UCC Article 9 What is a secured transaction? Ans- A business deal, generally a loan of money given in exchange for a security interest in personalty (personal property). If borrower doesn't repay, lender can sell the asset to pay off borrower's debt. Types of Collateral (4) Ans- 1. Tangible 2. Consumer Goods 3. Rights in Real Property 4. Intangible Tangible Collateral (3) Ans- 1. Inventory 2. Equipment 3. Farm Products Inventory Ans- 1. Goods held by a business *for sale/lease* 2. Any *raw or consumable* materials (flour, sugar, chemicals, cleaning supplies) Equipment Ans- Any tangible thing owned by a business & not for sale Ex: parrot mascot; razor that guy keeps at work; painting on wall Farm Products Ans- *Livestock & unprocessed goods* (eggs, grain, apples, honey, wool) - processed goods (cheese, etc) = inventory. - tractors etc. = equipment