busi law ch 30 and 31

after-acquired property

property of the debtor that is acquired after the execution of a security agreement

authenticate

to sign or, on an electronic record, to adopt any symbol that verifies the intent to adopt or accept the record

collateral

under Article 9 of the UCC, the property subject to a security interest

continuation statement

if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years

cross-collateralization

the use of an asset that is not the subject of a loan to collateralize that loan

debtor

under Article 9 of the UCC, any party who owes payment or performance of a secured obligation, whether or not the party actually owns rights in the collateral

floating lien

a security interest in proceeds, after-acquired property, or property purchased under a line of credit. is retained even when collateral changes character, classification, or location

security party

lender/seller or any person in whose favor there is a security interest, including a person to whom accounts or chattel paper has been sold

secured transaction

the payment of a debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has a legal interest

security interest

any interest “in personal property or fixtures which secures payment or performance of an obligation

security agreement

creates or provides for a security interest between the debtor and a secured party

financing statement

A document prepared by a secured creditor and filed with the appropriate government official to give notice to the public that the creditor claims an interest in collateral belonging to the debtor named in the statement

financing statement must:

contain the name and addresses of the debtor and creditor and describe the collateral by type or item

attachment

process in which a security interest in the property of another becomes enforceable

the secured party must:

give something of value to the debtor

perfection

The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by the filing of a financing statement with the appropriate government official

where does one normally file a financing statement?

in the appropriate state office in the state where the debtor is located