Our law firm represents Snohomish County businesses and their owners in secured loan transactions of most types, including vehicle loans, business loans, equipment leases, and much more. A secured transaction can be any agreement that includes collateral or security–something a party can keep, reposes, or sell–as a remedy for breach of the parties’ contract. The typical secured contract is a loan agreement that states the lender can sell one or more of the borrower’s assets if the borrower fails to pay on a loan agreement. For example, if you buy a car from a dealership and fail to make your payments, the vehicle financing company can repossess and sell the car.
We assist clients in all phases of secured transactions, from negotiations and contract drafting to repossession and foreclosure. Our attorneys enjoy excellent academic credentials, and we charge significantly less per hour than most other firms in our area. To speak directly with one of our attorneys, please contact us toll free at 866-631-0028, or send us an introductory email at firstname.lastname@example.org.
Frequently Asked Questions:
I’d like to do my own research on secured transactions, but I can’t find the applicable laws. Where are the relevant laws located? Secured transactions are government primarily by Article 9 of the Uniform Commercial Code (UCC), which Washington codified as Chapter 62A.9A RCW.
I’ve been working on someone’s car, and the car’s owner hasn’t paid me. Do I have a security interest in the car? Yes, you probably do have a security interest in the car. A security interest can “attach” and become “perfected” by possession in this situation.
What is a “purchase money security interest” and why does it matter? A purchase money security interest (PMSI) occurs when a secured loan is used to purchase the loan’s collateral. For example, an auto financing company would usually have a PMSI in the cars it helps fund. PMSI’s holders occupy a position of privilege within the world of secured transactions–they usually get paid before other lien holders. In legal terms, PMSI usually have “priority” over other security interests.
What do “attach” and “perfect” mean in the context of security interests? These terms are often misunderstood, although they comprise the heart of secured transactions. Put simply, a security interest comes into existence when it “attaches”. But creating the security interest is not enough to ensure payment if there are multiple creditors. One of the debtor’s other creditors might sell the property and take the money. That is where the term “perfection” comes into play. Perfection is when a creditor’s security interest gains an established place in line with other creditors, if any. Wise creditors perfect their security interests soon as possible to increase the likelihood of receiving payment.