The concept of secured transactions is important to modern business. A creditor often requires some security from the debtor beyond a mere promise to pay. In general, the creditor may require the debtor to provide some collateral to secure payment on the debt. The creditor then becomes known as a secured party because the debt repayment has additional assurance of collateral rather than just the mere promise to repay. If the debt is not paid, the creditor then can resort to the collateral. Under revised Article 9 of the UCC, the collateral is generally personal property or fixtures. You need to understand the concept of attachment as discussed in this module. You also need to understand the important concept of perfection discussed in this module that allows a secured party to obtain greater rights over many third parties. Be sure to understand the three methods by which perfection can be accomplished. The examination also covers rules of priorities when competing interests exist in the same collateral. Before beginning the reading you should review the key terms at the end of the module.
A. The Elements of Secured Transactions
B. Attachment of Security Interests
C. Perfecting a Security Interest
D. Other Issues under Secured Transactions
F. Rights of Parties upon Default
G. Other Rights of Parties
Multiple-Choice Answers and Explanations