Collateral description in the security agreement

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Reference no: EM133653881

Question

On March 1, Chic purchased a band saw on credit for $750 from Terry's Tools ("Terry"). Chic agreed to give Terry a security interest in the band saw, but Terry did not have the security agreement prepared at the time Chic purchased the band saw. Terry told Chic that he would e-mail the security agreement to Chic, which Terry did the next day. Chic received the e-mail and immediately left a voicemail message for Terry that he had received the e-mailed security agreement and would print it out, sign it, and return it to Terry. Chic never printed out or signed the e-mailed security agreement. On June 30, Chic signed a security agreement giving his brother-in- law, Rufus, a security interest to secure a loan of $900 that Chic had borrowed from Rufus one year earlier. The collateral was described as follows: "All of Chic's inventory, equipment, and all other assets." (1) Did a security interest attach in favor of Terry? (2) Is the collateral description in the security agreement in favor or Rufus sufficient?

Reference no: EM133653881

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