How Do You Become A Secured Party Creditor?
A secured party creditor is someone who holds a security interest in some goods or property of a debtor. A security interest is a legal term used to describe the right a secured party has to the property itself or the proceeds of the property under the security interest if the debtor fails to pay or otherwise fails to perform his obligations to the secured party. This realm of law is governed by the jurisdiction’s Uniform Commercial Code, specifically Article 9. It is an incredibly complex area of the law that mainly deals with sorting out the priority between two or more secured parties. Becoming a secured party is not overly complex; it involves writing a security agreement and filing that agreement with your state’s Secretary of State. Step 1 Enter into a security agreement with the debtor. A security agreement is a contract between the debtor and the secured party. No particular words or phrasing are required. However, the agreement must be authenticated by the debtor, and the agre
