 A person wants property but does not have money – needs to become a debtor.

 Options available to potential creditor:  1. Refusal

 A person wants property but does not have money – needs to become a debtor.  Options available to potential creditor:  1. Refusal  2. Obtain promise to repay

 A person wants property but does not have money – needs to become a debtor.  Options available to potential creditor:  1. Refusal  2. Obtain promise to repay  3. Obtain surety

 A person wants property but does not have money – needs to become a debtor.  Options available to potential creditor:  1. Refusal  2. Obtain promise to repay  3. Obtain surety  4. Obtain collateral

1. Collateralized transaction in personal property or fixtures

a. Property debtor owns

1. Collateralized transaction in personal property or fixtures a. Property debtor owns b. Property to be acquired with the loan (purchase-money security interest or PMSI)

1. Collateralized transaction in personal property or fixtures a. Property debtor owns b. Property to be acquired with the loan (purchase-money security interest or PMSI) c. After-acquired property

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables 3. Consignments which could deceive creditors

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables 3. Consignments which could deceive creditors a. Value $1,000 or more

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables 3. Consignments which could deceive creditors a. Value $1,000 or more b. Not consumer goods

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables 3. Consignments which could deceive creditors a. Value $1,000 or more b. Not consumer goods c. Potentially deceptive consignee

1. Collateralized transaction in personal property or fixtures 2. Sales of receivables 3. Consignments which could deceive creditors 4. Lease-purchase arrangements

 Rights governed by U.S. federal law

 Real property (except fixtures)

 Rights governed by U.S. federal law  Real property (except fixtures)  Tort claims (except commercial tort claims)

 Rights governed by U.S. federal law  Real property (except fixtures)  Tort claims (except commercial tort claims)  Deposit accounts in consumer transactions

 Rights governed by U.S. federal law  Real property (except fixtures)  Tort claims (except commercial tort claims)  Deposit accounts in consumer transactions  Statutory liens

 Rights governed by U.S. federal law  Real property (except fixtures)  Tort claims (except commercial tort claims)  Deposit accounts in consumer transactions  Statutory liens  Wage assignments

 Goods – moveable items and fixtures

 Consumer Goods

 Equipment

 Inventory

 Farm Products -- crops

 Farm Products -- livestock

 Instruments – notes, drafts, checks, CDs

 Documents – Warehouse receipt

 Documents – Bill of lading

 Chattel Paper (1) Monetary Obligation plus (2) Security interest in or lease of goods

 Account Right to money for Goods sold or leased or Services rendered Not evidenced by an instrument or chattel paper.

 Deposit Account – checking or savings account

 Investment Property

 Commercial Tort Claims

 General Intangibles

 1. Creditor gives value

 2.Security agreement (contract)

 1. Creditor gives value  2.Security agreement (contract)  a. Oral (the pledge) – only if collateral in creditor’s possesion

 1. Creditor gives value  2.Security agreement (contract)  a. Oral  b. Authenticated record which describes collateral

 1. Creditor gives value  2.Security agreement (contract)  a. Oral  b. Authenticated record which describes collateral  c. Control

 1. Creditor gives value  2.Security agreement (contract)  3. Debtor has rights in the collateral