Define Fillable Fields In Legal Colorado Secured Transactions Forms For Free

A secured transaction is a contract between the debtor and the secured party. Like most contracts, there must be an exchange of consideration between the parties. In other words, there must be an exchange of value. In the case of secured transactions, the value given by the secured party is usually obvious.

UCC § 9-203 sets forth the requirements for attachment and enforceability of security interests. In general: (1) the creditor must give value, (2) the debtor must have rights in the collateral, and (3) there must be a security agreement or other action indicating an intent to convey a security interest.

A financing statement is another key document in a secured transaction. This is typically filed with a public office such as a state's Secretary of State and so is a public document. The financing statement must provide: · the name of the debtor; · the name of the secured party; and.

Subsection (b) states three basic prerequisites to the existence of a security interest: value (paragraph (1)), rights or power to transfer rights in collateral (paragraph (2)), and agreement plus satisfaction of an evidentiary requirement (paragraph (3)).

By Agreement with the Debtor Security obtained through agreement comes in three major types: (1) personal property security (the most common form of security); (2) suretyship?the willingness of a third party to pay if the primarily obligated party does not; and (3) mortgage of real estate.

The secured party must give value (any consideration that supports a simple contract). The debtor must have some legal right in the collateral or ownership interest. This can be a present or future interest in the property.