Esquire Many people misunderstand the use of security interests and their enforcement. While the subject is much too broad to cover completely here, there are some highlights we can hit. A security interest is a lien in personal property.
Equipment is an example of personal property.
Although many states have varying versions, there are basic uniform provisions. There are, as you may guess, thousands of decisions about whether each of these requirements was met in any given case. Often, there will be language in the contract or the sales slip that grants the security interest. These situations may be as mundane as the grant of a security interest to the retailer for the refrigerator you buy on credit or as complicated as the grant of a security interest to you in the specialized equipment a vendor is building for you and for which you have made a substantial down payment. Other times it becomes an issue if someone else wants to take a security interest and wants to make sure there are no prior liens.