In order for a security interest to be attached to the security held by subsequent buyers, it must be perfected. If the security contract for a security purchase is of interest to consumer products, perfection is automatic. Otherwise, the lender must register either the agreement itself or a UCC-1 funding declaration in an appropriate public place (usually the Secretary of State or a public enterprise commission under that person`s control). The enhancement of interest creates constructive communication, considered legally sufficient to inform the rest of the world of the lender`s rights over guarantees. When a borrower has used the same property as the guarantees for several guarantee agreements with different lenders, the first lender to register the interest is most entitled to that property. Article 9 also provides for the resolution of disputes where there are several security interests or guarantees on certain guarantees. See No. 9-310 – 9-316 code. Section 9, Part 5, deals with procedures to be followed in the event of a borrower`s insolvency. See No. 9-501 – 9-507 code.
See No. 9-102 (2) and 9-310 code. Article 9 contains a fraud status that imposes a written guarantee contract, unless it is mortgaged. See code point 9-203 (1). A mortgaged guarantee agreement is entered into when the borrower transfers the guarantee to the lender for a loan (for example. B a pawnbroker). The “perfection” of a security agreement allows an insured party to get priority over third-party guarantees. To complete a security agreement, it is usually necessary to submit a public notice. See 9-302 – 9-305 code. A security agreement under U.S.
law is a contract that governs the relationship between the parties with some kind of financial transaction known as a secure transaction. In the case of a secure transaction, the Grantor (usually a borrower, but perhaps a surety or collateral) assigns the beneficiary (usually the lender) a security interest for personal property called security. Stocks, livestock and vehicles are examples of typical warranties. A guarantee contract is not used to transfer any shares in real estate (land/real estate), only personal property. The document used by lenders to obtain a right to pledge to real estate is a mortgage or an act of trust. A guaranteed debt may contain a security agreement under its terms. When a security agreement lists a commercial property as collateral, the lender can file a UCC-1 return that will serve as a guarantee for the property.