What is measurable value under the UCC?
Measurable value is one of the key criteria that must exist for collateral to be attached to a security interest under the UCC. Measurable value is captured in item #2 in the visual below:
Basically, this requirement relates to the fact that the collateral must have tangible value, which means it would have value to an unrelated party. This is important because the creditor may need to sell the collateral to recoup the loan proceeds if the debtor defaults.
In the two examples below, measurable value can be found with Jenny’s car, but not Jenny’s humor!
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What is a security interest?
A security interest is when the creditor has legal claim or a lien on collateral that has been pledged by the debtor to obtain a loan. This provides tangible value that the creditor can seize and sell to pay off the loan if the debtor defaults. In order for a security interest to be legally...
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What are the requirements for attachment under UCC?
In order for attachment of collateral to exist on a security interest, there are three requirements that must be met:
What is a security interest?
A security interest is when the creditor has legal claim or a lien on collateral that has been pledged by the debtor to obtain a loan. This provides tangible value that the creditor can seize and sell to pay off the loan if the debtor defaults. In order for a security interest to be legally...
What are the requirements for attachment under UCC?
In order for attachment of collateral to exist on a security interest, there are three requirements that must be met:
