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The second definition is becoming more frequently used commercially, and arguably is to be preferred, [citation needed] as the traditional English legal usage has little purpose except in relation to the comparatively rare true legal mortgage (very few other security interests require additional steps to attach to the asset. Security interests ...
If the security agreement is for a purchase money security interest in consumer goods, perfection is automatic. Otherwise, the lender must record either the agreement itself, or a UCC-1 financing statement , in an appropriate public venue (usually the state secretary of state or a state business commission under that person's authority).
A security interest becomes enforceable against the collateral as soon as it attaches. Attachment requires three things: (i) that the debtor have rights in the collateral or the power to convey rights; (ii) that value be given; and (iii) in most cases, that the debtor have authenticated a security agreement that adequately describes the collateral.
The same rule – the common law rule in Dearle v Hall, for instance – may govern both perfection against third parties (e.g., subsequent security holders) and prioritization of competing security interests. In most legal systems, the need for perfection arises only in relation to security interests that are proprietary in nature (such as a ...
A secured transaction includes several forms of collateral. The definition of collateral in the U.C.C. is: the property subject to a security interest or agricultural lien. The term includes: (A) proceeds to which a security interest attaches; (B) accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
An equitable lien is a legal remedy rather than a security interest created to contemplate or support a transaction. In US law, such liens characteristically arise in four circumstances: [ 6 ] when an occupant of land, believing in good faith to be the owner of the land, makes improvements, repairs, or other expenditure that permanently ...
The United States is the global leader in security interest law with respect to personal property; in the 1940s, it was the first country to develop and enact the notion of a "unified" security interest. That concept has since spread to many countries around the world after it became evident that it is one of the reasons for why the United ...
A mortgage is a legal instrument of the common law which is used to create a security interest in real property held by a lender as a security for a debt, usually a mortgage loan. Hypothec is the corresponding term in civil law jurisdictions, albeit with a wider sense, as it also covers non-possessory lien.