Quiz 22: Security Interests in Personal Property
Security interest refers to any interest in private property which secures performance or payment of an obligation. A secured party refers to seller, lender, or any other person in whose support there will be a security interest. It also includes the people to whom chattel paper or accounts have been sold. A security agreement refers to the agreement which provides or creates a security interest among a secured party and a security. Financing statement refers to the document set by a secured creditor and filed with local or state official. It provides notice to the public about the security interest hold by the creditor in the security belonging to the debtor mentioned in the statement.
Mr M has the following rights to be used against Mr G in this situation: 1) Mr M can take possession of the machines through court order or through peaceful agreement after serving proper notice to Mr G. 2) Use judicial remedy for relinquishing the security interest and getting back the amount.
(1)The Product T and six computers required to have perfected security interest. The filling is required for these products as they are of high values and are unsecured in nature. These products will require a much longer duration for payback and hence financials must be filed on them for securing the interest. (2)If the name of Company B is mentioned as the creditor instead of Mr B then only the firm will be liable for making the payment. This might result in loss for the creditor when there will be no profit in the firm and it will be declared insolvent. The creditor can make claim only over the office goods. (3)The purchase money security interest (PMSI) for consumer goods is valid only for Product B sound system and the Product WS kayak as they are meant for his household and personal consumption. (4) , Company K can recover the sound system. When Mr B fails to make payment for his dues, Company K can recover these items instead of selling them under Article 9. These articles can be easily picked up from the house of the debtor without disturbing the peace in general.