Security Agreement Ucc Definition

(56) „new debtor,“ a person who is bound as a debtor in accordance with sections 9-203 (d) by a guarantee contract previously entered into by another person. The perfection process is not required by law, but it remains an important step for those with a safety interest. Without perfection, it is impossible for the sure parties to be truly sure that the debtor`s security is safe from other creditors. (10) „Certificate of Law“: an act of title for which a statute provides that the security interest in question is recorded on the certificate as a condition or result of the priority of the interest of the securities over the rights of a pawnholder over the guarantees. The term includes another reference, which is considered an alternative to a certificate of title from the government unit that issues certificates of ownership where a statute allows the security interest in question to be indicated as a condition or result of the priority given to the interest of securities over the rights of a pawnbroker with respect to collateral. Real estate that can be declared as collateral under a security agreement includes inventory of products, furniture, equipment used by a company, home furnishings and real estate owned by the company. The borrower is responsible for maintaining security in good condition in the event of a default. The property classified as collateral should not be removed from the premises unless the property is required in the normal framework of operations. An often confusing term „perfect“ in a security agreement does not mean that the document is error-free. On the contrary, a „perfect“ security contract ensures that an insured party can claim promised guarantees in the event that the debtor declares bankruptcy. (26) „consumption transaction“: an operation in which (i) a person assumes an obligation primarily for personal, family or domestic purposes; (ii) an interest in security ensures the obligation and (iii) the guarantees are held or acquired primarily for personal, family or domestic purposes. This term includes transactions of consumer goods.

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