Security Interests

Question 1

Security Interest:

Creation

Answer 1

Requirements for attachment:

1. Writing signed by debtor (only) including description of collateral (unless creditor possession of collateral)
2. Secured party must give value
3. Debtor must have “rights” in the collateral

Question 2

Security Interest:

Rights of Creditor

Answer 2

1. right to repossess
2. sell repossessed collateral
3. creditor is a secured creditor and has priority over other unsecured creditors
4. creditor has priority in bankruptcy over unsecured creditors
5. creditor has the right to perfect the security interest