Delete Pages From Legal Rhode Island Secured Transactions Forms For Free

A secured transaction is an agreement between two parties in which one of the parties gives property (other than real estate) as collateral, or security, for a loan. There are two types of secured transactions.

PERFECTION FOR CONSUMER GOODS A creditor who sells goods to a consumer on credit and retains a security interest has a purchase money security interest. Smith sells a refrigerator to Bob on credit and obtains a proper security agreement so that the refrigerator may serve as collateral for the payment of the amount due.

In the United States, the law of secured transactions covers the creation and enforcement of a security interest. In most cases, a secured transaction occurs when a person or business borrows money in exchange for collateral for the purpose of acquiring property, including real estate, vehicles or business equipment.

Some common types of secured transactions include mortgage and car loans. When a debtor borrows money to purchase a car, the vehicle is the collateral for the loan. The creditor has a security interest in the vehicle and the creditor can repossess and sell the car if payments are not made.

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 law of secured transactions consists of five principal components: (1) the nature of property that can be the subject of a security interest; (2) the methods of creating the security interest; (3) the perfection of the security interest against claims of others; (4) priorities among secured and unsecured creditors? ...