LexisNexis® Legal Newsroom
Margit Livingston on Equitable Marshaling of U.C.C. Article 9 Security Interests

Plaintiff obtained a default judgment against Artemis Technologies and then sought to enforce that judgment serving writs of garnishment on their customers, who were the account debtors on the defendant's accounts receivable. For some reason the Bank with a prior perfected security interest had a...

Professor Margit Livingston on Attachment of U.C.C. Article 9 Security Interests

The first job for any secured party seeking to have an enforceable and perfectible security interest is to achieve attachment by: 1) having the secured party give value to the debtor; 2) the debtor having rights in the collateral and; usually, 3) the debtor's authentication of a security agreement...

Professor Margit Livingston on the Debtor's Name under the 2010 Amendments to U.C.C. Article 9: California's Interesting Journey

The 2010 Amendments to U.C.C. Article 9 went into effect in most states on July 1, 2013. A key portion of the amended debtor name provisions focused on the appropriate name of an individual debtor so as to ensure the best prospects of giving notice of the security interest. The drafters offered two alternate...

Professor Margit Livingston on Bankruptcy and Lapse of Perfection under U.C.C. Article 9

It is incumbent upon secured parties to file continuation statements within the six-month period before the expiration of their financing statements to ensure continued perfection. In a recent bankruptcy case, a secured creditor narrowly averted disaster when it let its financing statement lapse after...

Professor Margit Livingston on Article 9 Secured Parties vs. Lien Creditors Post-Default

Excerpt: Secured parties under U.C.C. Article 9 have a love-hate relationship with the cash proceeds of their collateral. On the one hand, a security interest in original collateral (inventory or accounts, for example) will remain attached and perfected in all identifiable cash proceeds of that collateral...

Enforceable Security Agreement Implied From Bill of Sale—UCC § 9-203

Tough Company, Inc. v. Wurlitzer 2014 Cal. App. Unpub. LEXIS 633 (Cal. App. 3d Jan. 28, 2014) (Not Officially Published) [ an enhanced version of this opinion is available to lexis.com subscribers ] In a legal battle between a “Tough Company” and a “Wurlitzer,” you might expect...

Professor Margit Livingston on Commercially Reasonable Dispositions of Collateral Under U.C.C. Article 9

The Code has two requirements for foreclosure sales: (1) The secured party must give reasonable notification of the impending sale and (2) the secured party must engage in a commercially reasonable disposition of the collateral. In a recent decision by the 5th Cir. Ct. of Appeals, the court focused on...

Professor Margit Livingston on Legal Malpractice for Failure to File a U.C.C. Article 9 Financing Statement

Every secured party's nightmare is the realization that it forgot to file a financing statement in the appropriate public office to perfect its security interest. Sometimes that nightmare extends to the secured party's attorney, who may find herself facing a legal malpractice claim for failing...

Professor Margit Livingston on Consignments under U.C.C. Article 9

Excerpt: Consignments are typical in the art world. The owner of a painting who wishes to sell it will often consign it to an art gallery for exhibit to the public. The gallery will be empowered to sell the painting on behalf of the owner, usually at a predetermined minimum price. Upon sale of the...

Professor Margit Livingston on The Debtor's Name on a U.C.C. Article 9 Financing Statement: In re Patriot Electric & Mechanical, Inc.

Much time, energy, and thought has been spent in refining UCC provisions regarding the correct debtor name for a financing statement and the amount of latitude that should be allowed for minor errors. Article 9 was revised in 2010 in part to address these troublesome issues. With the first cases under...

Professor Margit Livingston on Attorneys' Fees as Collateral under U.C.C. Article 9

Article 9 of the Uniform Commercial Code permits many different types of property to serve as collateral—both tangible and intangible. Sometimes law firms find themselves in need of funds to support their efforts on behalf of clients and may seek an operating loan secured by prospective fees. This...