Agreement General Form With Collateral In Virginia
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FAQ
Security agreements grant a creditor a security interest in the debtor's property, ensuring the creditor's repayment in case the debtor defaults. The Uniform Commercial Code (UCC) is a comprehensive set of laws governing commercial transactions, including secured transactions.
The security agreement must: be signed (or authenticated) by the debtor and the owner of the property, contain a description of the collateral and. make it clear that a security interest is intended.
A security interest in a certificated security—or any uncertificated security, for that matter—can be perfected by the proper filing of a UCC-1 financing statement. Alternatively, a secured party can perfect an interest in a certificated security by control of the certificate.
Recording a security agreement—filing / registering it with the state—does a number of things for both parties involved. It becomes important if the secured property (which we discussed above) has multiple people creditors going after it.
Ing to UCC Section 9-504, a financ- ing statement “sufficiently indicates the collateral that it covers” if the financing statement provides (1) a description of the collateral pursuant to UCC Section 9-108, or (2) a generic description of all assets or all personal property of the debtor if the description of ...
A security agreement creates the security interest, making it enforceable between the secured party and the debtor. A UCC-1 financing statement neither creates a security interest nor does it alter its scope; it only gives notice of the security interest to third parties.
UCC Section 9-108(b) provides that a description reasonably identifies collateral by any of the following: specific listing; category; except as otherwise pro- vided in UCC Section 9-108(e), a type of collateral defined in the UCC; quantity; computational or allocational formula or procedure; or, any other method ( ...
(c) Supergeneric description not sufficient. A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.
