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A statute that requires the mortgage or deed of trust to be recorded in the county recorder’s office of the county in which the real property is located
This record gives potential lenders or purchasers of real property the ability to determine whether there are any existing liens (mortgages) on the property
A transaction that is created when A transaction that is created when a creditor makes a loan to a a creditor makes a loan to a debtor in exchange for the debtor in exchange for the debtor’s pledge of personal debtor’s pledge of personal property as security.property as security.
Perfection of a Security Interest Establishes the right of a secured
creditor against other creditors who claim an interest in the collateral
Perfection is a legal process The three main methods of perfecting a
security interest under the UCC are:1. Perfection by filing a financing statement2. Perfection by possession of collateral3. Perfection by a purchase monetary security interest in
Artisan’s and Mechanic’s Liens If a worker in the ordinary course of
business furnishes services or materials to someone with respect to goods and receives a lien on the goods by statute or rule of law, this artisan’sartisan’s or mechanic’s mechanic’s lienlien prevails over all other security interests in the goods unless a statutory statutory lienlien provides otherwise [UCC 9-310]
Failure to make scheduled Failure to make scheduled payments when due, bankruptcy of payments when due, bankruptcy of the debtor, breach of the warranty the debtor, breach of the warranty of ownership as to collateral, and of ownership as to collateral, and other events defined by the parties other events defined by the parties to constitute default [UCC 9-501(1)].to constitute default [UCC 9-501(1)].
Upon default by the debtor, the secured party may reduce his or her claim to judgment, foreclosure, or otherwise enforce his or her security interest by any available judicial procedure: Repossession Retention of collateral Disposition of collateral Proceeds from disposition Deficiency judgment Redemption rights
Upon default by the debtor, the secured party may reduce his or her claim to judgment, foreclosure, or otherwise enforce his or her security interest by any available judicial procedure: Repossession Retention of collateral Disposition of collateral Proceeds from disposition Deficiency judgment Redemption rights
Summary: Liability of Sureties and Guarantors ComparedType of Arrangement
Party Liability
Surety Contract Surety Primarily liable.The surety is a co-debtor who is liable to pay the debt when it is due.
Guaranty Contract Guarantor Secondarily liable.The guarantor is liable to pay the debt if the debtor defaults and does not pay the debt when it is due.
When a debt is past due, the creditor may bring a legal action against the debtor
If the creditor is successful, the court will award a judgment against the debtor
The judgment will state that the debtor owes the creditor a specific sum of money: Principal and interest past due on the debt, Other costs resulting from the debtor’s default, and Court costs