Commercial Law

The portrait of Davy Crockett: The portrait will be the security of Tom as it is not an inventory. It is a furnishing item and a contract has been made regarding it with Tom. The antique roll top desk: This may be a furnishing item or an inventory. If this is a furnishing item the security lies with Tom while the bank will have the security in the case of an inventory. (UCC: Uniform Commercial Code, n. d. ) Big Auto Sales hired Expert Repo to repossess a Subaru Forester automobile owned by Maria who was in default on the associated promissory note.

In this case also, the ownership and the security lie with the company. Therefore, when this is passed to the bank then it becomes a good collateral. A limousine which the President of Massive Dynamics uses to escort potential clients around its facilities. The car may be the personal property of the President. If this is a personal property, it cannot be collateral for the loan. If the car is the property of the company, it can be termed as collateral. In the case of the personal property, the security lies with the President.