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Commonly Asked Questions about Secured by Personal Property

Tangible personal property refers to any type of property that can generally be moved (i.e., it is not attached to real property or land), touched or felt. These generally include items such as furniture, clothing, jewelry, art, writings, or household goods.
A debt secured by an item of personal property is commonly referred to as a secured debt. Explanation: Secured debt is a financial arrangement in which a borrower pledges personal property, often referred to as collateral, to secure a loan.
Personal property is a type of property that includes any movable object or intangible asset of value that can be owned by a person and is distinct from real property. Examples include vehicles, artworks, and patents. Under common law, it is synonymous with chattel or personalty.
The UCC divides personal property or goods into different classes: consumer goods, equipment, inventory, general intangibles, farm products and fixtures. As far as tangible personal property is concerned, the goods are classified by the debtors intended use.
If you have pledged property as collateral for a loan, the loan is called a secured debt. Examples of secured debt include homes loans and car loans. The loan is secured by the car or home, which means that the person you owe the debt to can repossess the car or foreclose on the home if you fail to pay the debt.
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).
If a debtor gives a gold watch to a pawn shop to secure a pawn loan, for example, that shows intent to encumber the property. A financing statement is another key document in a secured transaction. This is typically filed with a public office such as a states Secretary of State and so is a public document.
Personal Property: are tangible capital assets/property that are moveable, unlike land or buildings. Examples include equipment, vehicles, computers, etc. SAM section 8634 includes intangible assets not related to land and liquid monetary assets such as cash in this definition to administer gifts received by the state.