The secured party can sue the debtor for the amount of the default, or the amount still owed on the loan.In this case, the secured party doesn't take possession of the collateral.This is similar to what happens when you pawn an item.
The secured party can sue the debtor for the amount of the default, or the amount still owed on the loan.In this case, the secured party doesn't take possession of the collateral.This is similar to what happens when you pawn an item.Tags: Argument Essay On Death PenaltyShort Essay On French RevolutionTheaching Theory EssaySujets Dissertations PhilosophiquesThesis Methods Of ResearchEssay On Recruitment And Selection ProcessExamples Of Argumentative Essays For KidsPlastic Surgery Opinions EssayElements Of Creative WritingKinds Of Essay According To Subject Matter
It must: Once attachment is complete, the secured party should perfect the interest by filing a financing statement.
Perfection gives the secured party priority over other creditors that later seek a right to the same collateral.
However, secured transactions additionally contain a security agreement.
This agreement can be a separate contract or a paragraph in the loan document.
For example, let's say I fail to make my mortgage payments.
Ron Rash Critical Essays - Secured Transactions Essay Approach
My mortgage company has a security interest in my home and has perfected its interest.For this reason, my car can't serve as the security interest for my mortgage.The value of the car isn't enough to cover what I owe on my home loan.Security interests are often given in exchange for the same property for which the debtor borrowed the money, but this isn't always the case.Just note that the security interest must be capable of covering the loan.When I took out my mortgage to buy my house, the bank acquired a security interest in my house.If I fail to pay my mortgage, the bank can leverage its interest in my house to settle my debt.In this case, the security interest is perfected when attachment occurs.If the debtor fails to make payments when due or otherwise fails to fulfill the terms of the security agreement, it's known as a default.This set of model laws addresses all commercial transactions.Secured transactions are executed through a contract, just like most other business deals.