This research guide is not intended to be comprehensive, but rather will list some of the major sources of law in the area and a variety of tools for the researcher to use when confronted with a question involving a secured transaction. Links in this research guide will take the researcher to information about the resource, and in some cases, will link to full text of the resource. The titles of materials held in the Seattle University Law Library are linked to the bibliographic records in the library's catalogs. The title or citation for Web-based materials will be linked to the internet site where those materials or information about them may be found. Citations to materials that are available on Westlaw, Lexis, or other databases, including cases, statutes, and law review articles of interest, may be linked to their source in one of those databases, and if so, will be available only to authorized users.
A secured transaction is a method of financing a purchase. Instead of relying solely on a borrower's promise to repay a loan, a lender creates or retains an interest in specific property. Such security offers the lender unique remedies in case the borrower defaults on repayment. For example, if a person wants to purchase a refrigerator on credit, that person asks a lender to finance the purchase. A lender could give the borrower the money solely in exchange for the borrower's promise to repay at some later date (usually with interest). Alternatively, the lender could also require certain security to assure repayment of the loan. The secured interest is usually created at the same time as the lending contract. In the above example, the lender might require that the borrower assign all borrower's interest in the refrigerator until the loan is entirely paid off. If the borrower defaults, the lender can take possession of the refrigerator and resell it. A lender may also require a pledge of security in property other than the property being financed. Because of this, a single piece of property may have more than one secured interest on it.
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