In re Schwalb
United States Bankruptcy Court for the District of Nevada
347 B.R. 726 (2006)
Relevant factsFree
Michelle Schwalb (plaintiff) received a $4,000 loan from Pioneer Loan and Jewelry (Pioneer), secured by her Infiniti vehicle, and signed a pawn ticket describing the collateral and stating "You are giving a security interest in the following property"; Pioneer never took physical possession of the vehicle, which Schwalb continued driving until she defaulted and later filed bankruptcy. When Pioneer sought to recover the vehicle, Schwalb argued the pawn ticket didn't constitute a valid security agreement.
IssueFree
Whether a security agreement is enforceable, absent any specific magic words, if its language clearly indicates the parties intended to create a security interest.