Types of Security Interests in Personal Property

To put people on notice that there MAY be a security interest.

To allow a third party to understand they must dig deeper.

If the collateral is personal property already owned by the debtor.

<p>Possessory Security Interest involves the secured party taking possession of the collateral, while Non-Possessory Security Interest does not require the secured party to take possession.</p> Signup and view all the answers

<p>A security interest in 'accounts' can be granted by notifying the other party of the contract once the debtor defaults on their obligation.</p> Signup and view all the answers

<p>A statement such as 'to be paid with respect to any contract for construction or repair of bridges or roads, whether existing now or in the future' is considered a reasonable description of collateral.</p> Signup and view all the answers

<p>It creates or provides for a security interest.</p> Signup and view all the answers

<p>If the lessee's obligation to pay is not subject to termination and the lessee has the option to become the owner of the goods for no additional consideration upon compliance with the lease.</p> Signup and view all the answers

<p>Whatever is acquired upon the lease of collateral.</p> Signup and view all the answers

<p>By filing a financing statement in the Secretary of State office where the debtor filed the financing statement for the collateral.</p> Signup and view all the answers