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Prioritizing Creditors: The Doctrine of Equitable Marshaling

Excerpt: Under Article 9 (Secured Transactions) of the Uniform Commercial Code, the default rule for priority among secured creditors is the first-to-file-or-perfect. U.C.C. § 9-322 (a)(1) (Official Text 2009). In other words, the secured party that first files a financing statement in the...

Livingston on the Ongoing Issue of the Debtor's Name on UCC Article 9 Financing Statements

There are any number of potential pitfalls along the way to properly setting up a secured transaction, but perhaps the most bedeviling stems from the failure to set forth the debtor's name correctly on the financing statement. As a recent bankruptcy court decision reveals, even sophisticated creditors...

Delaware Court Provides Critical Guidance as to the Commercial Reasonableness of a UCC Article 9 Foreclosure Sale

by Raphaela Taylor Secured lenders often resort to non-judicial foreclosure sales of personal property upon a borrower's default. Article 9, Part 6 of the Uniform Commercial Code requires that every aspect of such a sale must be commercially reasonable. However, the courts have historically...