Credit and Secured Transactions

What is the difference between unsecured and secured credit? 

Secured has collateral

What problems exist for unsecured creditors?

Unsecured creditors have high risk

Are interest rates typically higher or lower for unsecured creditors compared to secured creditors?

higher

Are loan amounts typically higher or lower for each?

lower

What is a security interest in property?

Gives right to foreclose and take property if default

How does a lender take collateral for a secured loan?

foreclosure

Under what article of the UCC are secured transactions for personal property covered?

9

What does it mean to perfect a security interest?

 Giving the world notice that you have it (recording it)

How are mortgages typically perfected in Georgia?

 File or record a security deed (deed to secured debt)

What is the process of foreclosing on real property in Georgia?

 Send notice of accelerated loan, advertise/publish in paper, auction property off

How are security interests perfected under the UCC? 

security interests are generally perfected by filing a "financing statement" with the appropriate public office, typically the Secretary of State or a similar state agency

How long to UCC security interests last and how are they renewed?

UCC1 financing statement (last 5 years), file with a continuation statement

How does debt priority work?

determines the order in which debts are repaid, especially during bankruptcy or liquidation