Delaware Security Agreement in Accounts and Contract Rights

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Multi-State
Control #:
US-01730BG
Format:
Word; 
Rich Text
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Description

A secured transaction is created when a buyer or borrower (debtor) grants a seller or lender (creditor or secured party) a security interest in personal property (collateral). A security interest allows a creditor to repossess and sell the collateral if a debtor fails to pay a secured debt.


A secured transaction involves a sale on credit or lending money where a creditor is unwilling to accept the promise of a debtor to pay an obligation without some sort of collateral. The creditor requires the debtor to secure the obligation with collateral so that if the debtor does not pay as promised, the creditor can take the collateral, sell it, and apply the proceeds against the unpaid obligation of the debtor. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The property that is subject to the security interest is called the collateral. The party holding the security interest is called the secured party.

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  • Preview Security Agreement in Accounts and Contract Rights
  • Preview Security Agreement in Accounts and Contract Rights
  • Preview Security Agreement in Accounts and Contract Rights
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FAQ

The promissory note Delaware form requires certain information to validate the loan, such as the names and addresses of the parties, date of creation, principal loan amount, interest rates, and payment information.

Delaware enacted the 2010 amendments to Article 9 of the Uniform Commercial Code (2010 Amendments) when the governor signed HB 8Opens in a new window on .

(a) Article 9 definitions. ? In this Article: (1) ?Accession? means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. The term includes controllable accounts and health-care-insurance receivables.

year limitation applies for breach of written contracts and two years for breach of spoken contracts. Debt collection suits have a threeyear statute of limitations.

§§ 2-725. Statute of limitations in contracts for sale. (1) An action for breach of any contract for sale must be commenced within 4 years after the cause of action has accrued.

§§ 9-203. Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites. (a) Attachment. ? A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.

§§ 9-406. Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective. (a) Discharge of account debtor; effect of notification.

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Delaware Security Agreement in Accounts and Contract Rights