2. Without An Agreement There Can Be No Security Interest

Therefore, for most lenders, the value is indicated when the lender has lent money to the debtor, has committed to obtaining credit funds, or has issued a letter of credit or other form of credit enhancement for the benefit of the debtor. If a seller of goods sells them under deferred payment terms (for example. B if the payment is due over time under a conditional sales contract), this transaction constitutes a credit extension sufficient to constitute a “value”. [3] (2) as a guarantee for or in whole or in part, the satisfaction of an existing claim; Or more often, it`s camp. The camp can accept one of the two forms. An independent company can visit the site and set up a temporary structure, such as a fence around copper. B, which allows physical control over warranties to be introduced. Or the independent company can rent the debtor`s storage facilities and post signs indicating that the goods are within its custody right. One way or another, the goods are in physical possession of the storage service. The warehouse then separates the secured goods from the bank or the financial company concerned and delivers a storage receipt to the lender for those goods. The lender is therefore assured of a security interest in the guarantees. It is not uncommon for a practitioner who is invited to develop a security interest to engage directly in a long-standing dispute over how and where to file a UCC-1 funding statement; How to describe the safeguards on these statements perfecting through possession or control and various other subtleties of perfection.

The debtor is “a person who, with respect to an obligation guaranteed by a guarantee interest or an agricultural pledge, is liable for payment or any other performance of the undertaking, (ii) has provided property other than guarantees to ensure payment or performance of the obligation or (iii) is liable, by other means, for payment or any other performance of the obligation.” Unique Code of Trade, sections 9-102 (59). Here is example 1 of the official commentary of UCC 9-102: “Behnfeldt borrows money and gives security interest to his Miata to secure the debt. Behnfeldt is a debtor and debtor. Again, the debtor is usually the debtor, but let`s take example 3 of the same official comment: “Behnfeldt borrows money on an unsecured basis.” Bruno signed the note and placed an interest in the safety of his Honda in order to ensure his commitment.