Chapter25 keyterms by mh6bF4

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									CHAPTER 25

SECURED TRANSACTIONS: PRIORITIES AND ENFORCEMENT

KEY TERMS

Acceleration clause: clause in a security agreement by which the secured party demands that all
obligations be paid immediately
Attachment: take possession of debtor’s assets pending settlement
Bona fide purchaser of consumer goods: a consumer who buys goods from another consumer,
gives value for the goods, and is unaware of any claims against the goods by any third persons
Breach of the peace: the creditor is allowed to personally take possession of the collateral from
the debtor, but must stop any such efforts if continuation would involve the debtor or some other
person who is present objecting to the act of repossession
Buyer in the ordinary course of business: are purchasers who are buying from a seller who
routinely sells from inventory or otherwise regularly engages in such transactions
Chattel paper: A document that demonstrates both a monetary obligation and a security interest
either in goods or in a lease on goods.
Consensual lien: lien (the right to take another's property if an obligation is not discharged) that
arises by agreement of the parties
Default: fail to meet the obligations set out in the security agreement
File or perfect: to record a lien
“First in time, first in right”: the first security interest to file or perfect has priority over any
conflicting security interests in the same collateral
Garnishment: judicial order for a third person to retain property of the debtor in the third
person’s possession pending settlement
Judicial lien: lien (the right to take another's property if an obligation is not discharged)
acquired by the creditor in a judicial proceeding
Perfected security interest: a security interest that has been registered so that it is legally
enforceable and any subsequent claims take junior status.
Repossession: to take back
“Self help”: without the use of any judicial procedures or any court officers. Creditor may use
“self-help” methods so long as the methods do not involve a breach of the peace.
Strict foreclosure: retention of the collateral in satisfaction of the debt after the creditor acquires
possession

								
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