Security and Pledge – Security interest

Security and Pledge – Security interest

R.S. 10:1-201(35). (35) “Security interest” means an interest in personal property or fixtures, created by contract, which secures payment or performance of an obligation. “Security interest” includes any interest of a consignor and a buyer of.accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Chapter 9. The right of a seller or lessor of goods to retain or acquire possession of the goods is not a “security interest,” but a seller or lessor may also acquire a “security interest” by complying with Chapter 9. The retention or reservation of title by a seller of goods notwithstanding perfection of the sale is limited in effect to a reservation of a “security interest.” A lien or privilege created by operation of law is not a “security interest.” Whether a transaction in the form of a lease creates a “security interest” is determined pursuant to R.S. 10:1-203.

Art. 3136. Security defined. Security is an accessory right established by legislation or contract over property, or an obligation undertaken by a person other than the principal obligor, to secure performance of an obligation. It is accessory to the obligation it secures and is transferred with the obligation without a special provision to that effect.