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Is A Security Agreement Chattel Paper

Is A Security Agreement Chattel Paper

A secondary debtor is a debtor to the extent that: (A) [the obligation] is secondary; or (b) [the person] has a right of recourse with respect to an obligation that is secured by security against the debtor, another debtor or the property of one of them. Single Commercial Code, Section 9-102(a)(71). The second debtor is a guarantor (guarantor) of the debt, who is obliged to provide a service in case of delay of the main debtor. Look at Example 2 of the official commentary in section 9-102: “Behnfeldt borrows money and grants security interest to his Miata to insure the debt. Bruno signs a negotiable note as a creator. Behnfeldt remains debtor and debtor. As a hosting party, Bruno is a secondary debtor. (2) as security for or for the total or partial satisfaction of an existing claim; or security agreement agreement granting a warranty interest.

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