Secured Transactions

Secured Transactions

Introduction

Read the overview below and complete the activities that follow.

Before beginning this activity, review LO $19-2$ and $19-3$ in your text. Be sure to review how secured transactions are formed, and the different means of perfection that arise after a debtor is in default on a secured transaction, including: perfection by filing. perfection by possession, automatic perfection, and the perfection of motor vehicles.

CONCEPT REVIEW:

Article $9$ of the Uniform Commercial Code $($UCC$)$ governs secured transactions in personal property. A secured transaction is a transaction in which the payment of a debt is guaranteed by personal property owned by the debtor. As of $2009,$ with some variation, all states had enacted Article $9.$ Thus, while the law governing secured transactions is state law, the universal adoption of Article $9$ permits us to discuss laws regarding secured transactions across state lines.

$2$b$.$ Secured Transactions $2$

Consider the scenario below regarding the creation of a secured transaction. Roll your cursor over each to reveal an explanation. Then drag the examples to the timeline.

Car Lot Gives

Jessica Signs

Parties Write

Car Lot Equals Value Agreement

Agreement Secured Party

Right to Collateral

Security

Debtor's

S$.$P$.$ Gives Value

Right to Agreement Signature Collateral

Attachment