The debtor most often signs the security contract or written contract. The UCC states that „the debtor must have authenticated a security contract that contains a description of the security… „Authenticate“ (or „sign,“ „accept“ or accept) means sign or, in recognition of electronic business transactions, „execute or repossess a symbol, encrypt or process a data set in the same way… with the authenticating person`s current intention to identify the person and accept or accept a registration. The „record“ is the replacement of the modern UCC with the term „writing.“ It contains information stored electronically or on paper. Single Code of Trade, Section 9-102, Official Note 9. Here is a free example of an online security agreement: Docstoc, „Free Business Templates – Sample Open-Ended Security Agreement,“ www.docstoc.com/docs/271920/Free-Business-Templates-Sample Open-Ended-Security Agreement. General intangible assets refer to „any personal property, including in action, except accounts, commercial claims, deposit accounts, documents, assets, instruments, investments, credit rights, letters of credit, money and oil, gas or other minerals prior to extraction.“ General intangible assets include intangible payments and software. Unique Code of Trade, sections 9-102 (42). „A security interest in real estate, deposit accounts, credit rights in the letter of credit or Chatl`s electronic paper can be perfected by controlling collateral.“ Unique Code of Trade, Section 9-314. „Control“ depends on what security is. For example, in the case of a current account, the bank with which the deposit account is held has a „control“: the bank automatically receives a security interest because, as stated in the official notice 3 on Section 9-104 of the UCC, „all the debtor`s actual and potential creditors always indicate that the bank in which the debtor`s deposit account is managed can claim the deposit account.“ The „control“ of the electronic chat document and the credit rights of the letters is listed in sections 9-105, 9-106 and 9-107. Obtaining „control“ means that, given the manner in which the property is held, the creditor has taken all necessary steps to put himself in a situation where he can sell the property without the owner continuing to negotiate. Single Code of Trade, Section 8-106, Official Note 1. A creditor may, by an agreement between the parties or by application of the law, guarantee the ownership of the debtor after the debtor`s insolvency.
The Personal Property Security Act is Section 9 of the UCC. The first step for the creditor is to attach the interest of security. This usually occurs when the debtor, in return for value (a loan or loan granted by the creditor), secures a valuable asset in which he holds a stake and authenticates a security agreement (the contract) that gives the creditor a security interest and allows the creditor to withdraw it in the event of a delay. The UCC lists different types of assets that can be guaranteed, from tangible assets (property) to assets that can only be manifested by paper (indispensable paper) to intangible assets (such as patents). Sometimes no security agreement is required, most often when the creditor takes possession of the guarantees. After the seizure, the prudent creditor will want to improve the security interest to ensure that no other creditor claims to participate in the guarantee.