Failure to correctly identify a
debtor on a financing statement can be fatal to a creditor's attempted filing
of a security interest. Newly adopted amendments to Uniform Commercial Code
Article 9 are designed to clear up some areas of confusion regarding how
debtors' names appear on financing...
Security interests in
commercial tort claims require special attention to ensure that they are
properly created and perfected under UCC Article 9. This is demonstrated by two
recent Court of Appeals decisions. Ultimately, both Courts of Appeal held that
the secured party's security interest did...
A secured party's failure to
use approved forms to provide the names of additional debtors was fatal to its
security interests in those debtors' assets. Secured parties who are listing
multiple debtors should use the approved forms for providing the names. Or they
should file additional financing...
Credit sellers of large-ticket
items reserve security interests in the items sold to secure the buyer's
payment of the purchase price. These creditors sometimes get off track by
assuming that Article 9 does not apply to the transaction. In a recent Virginia
Supreme Court decision, an automobile dealer...
Where the debtor is radio or
television station, often the most valuable collateral will be the station's
FCC broadcast license. But FCC licenses pose special problems for secured
parties because of the federal restrictions on assignments and transfers of
them. In a recent case, the Tenth Circuit...
by Robert S. Fisher
Enforcing security interests in
tangible personal property depends on the characterization of the goods and the
actual or intended use of the goods. The distinction between
"consumer" and "commercial" characterization of goods in
the context of yachts and...
The normally impregnable status
of the senior perfected security party is justified by the need to facilitate
the extension of secured credit at reasonable interest rates. But in the case
of buyers in the ordinary course of business, the policies work differently.
by Jamie Watkins Bruno
Under Article 9 of the Uniform Commercial Code ("UCC"), a
secured party perfects its security interest in investment property - such as
certificated and uncertificated securities, securities accounts and commodity
accounts - by acquiring "control" over...
A secured party that perfects
its security interest without flaw at the outset can lose its perfected status
because of post-filing changes in the debtor's business structure. It is
incumbent upon secured parties to keep track of such changes and to act swiftly
to preserve perfection at all times...