Video: Secured Transactions

In this lesson, Nick Palazzolo, CPA, dives deep into the world of secured transactions, unraveling the complexities behind debtors, creditors, and collateral. He simplifies the concept by connecting it with everyday examples like car loans and mortgages, making it relatable and easy to grasp. Nick methodically breaks down the steps of a secured transaction, including attachment and perfection, explaining their importance in prioritizing creditors' rights and the consequences of default. Further, he discusses the various types of collateral under UCC Article 9, such as goods, intangible assets, investment property, and proceeds. With engaging explanations and a touch of humor, Nick ensures that the intricacies of secured transactions are thoroughly understood, helping unpack one of the more nuanced topics in business law.

"Examprep.ai helped me pass all 4 CPA exams on the first try. I highly recommend. I especially like the feedback and ratings the software provides so I know where to focus my time."

Daniel H., CPA

"I can't recommend ExamPrep.ai enough. Nick's lessons turned concepts I struggled with into strengths. I was able to pass FAR right before other exams expired!"

Andrew K, CPA

"I just want to say thank you for the great lesson videos. I couldn't stay awake through lectures of another course. After watching all your FAR lessons I was finally able to pass!"

Alyssa M., CPA Candidate

Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

Cite this lesson

Link to this page

[[ citeExample ]]

Copy to clipboard

Copy URL to clipboard

Copy HTML to clipboard

Secured transactions, we're getting to the namesake of this lesson. I know it's almost as if I named the lesson something and it seemed like we were never going to get there, but now here we are. Well, why is that? Everything we've talked about up until this point builds into what we'll see with secured transactions. Now, these are going to refer to transactions in which a borrower, known as the debtor, which now we know a lot about debtors, provides a lender known as the creditor with security, also known as collateral, to guarantee repayment of a loan. In a secured transaction, the lender has the right to take possession of the collateral if the debtor fails to repay the loan. This gives the creditor a degree of security in the transaction, hence the name secured transaction. Really, your best example here, car loans and mortgages on houses. You don't pay the bank back for the mortgage you have on your house, then they can take your house. If you don't pay the auto loan on your car, they'll come and take your car. Really, not that there are examples that aren't as good as those, but those are probably two of the most common ones that you would be familiar with. Hey, not that any of us are owning houses anytime these days. It's quite expensive. Probably never going to own a house at this rate, but that's just life. Take it day by day. We got examples here. As mentioned, we got auto loans and mortgages. Examples, when a person takes out an auto loan to purchase a car, the lender, also known as the creditor, will typically require the car to be pledged as collateral. This means that if the borrower, known as the debtor,

Unlock the full video transcript and subtitles support with a free account!

Get more from this lesson

Create an account 7-day free trial. No credit card required.

Bankruptcy, Debtors & Creditors, and Secured Transactions

Module: 3 Concepts, 46 Videos

Secured Transactions, Including the Rights, Duties and Liabilities of Debtors, Creditors and Guarantors Overview

2:55

Introduction to Secured Transactions

5:24

Debtors, Creditors, and Guarantors

3:10

Surety vs. Guarantor