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...
Unsure about perfecting a security interest in a manufactured home? Professor James P. Nehf discusses the relationship between Article 9, certificate of title laws, and real estate recording systems.
Prof. Nehf writes: Perfecting security interests...
The Permanent Editorial Board
for the U.C.C. recently issued a report explaining the Code provisions relevant
to the transfer and enforcement of mortgage notes. This report highlights the
particular provisions of Articles 3 and 9 that pertain to who can...
with debtor name changes can be a tricky problem for secured parties. Only
three pieces of information are required on a financing statement--the debtor's
name, the name of the secured party or its representative, and an indication of
Professor James P. Nehf discusses the way Article 9 handles corporate mergers and the steps creditors must take to remain continuously perfected in a debtors assets after the merger occurs by addressing. Ensuring that a security interest remains perfected...
Priorities among Article 9 secured parties holding security interests in the same collateral are normally governed by the first-to-file or perfect rule. Despite the rules obvious merits, the Article 9 drafters recognized that it might hamper the debtors...
In its simplest sense, the requirement that the debtor have rights in the collateral before the security interest can attach follows intuitively from the idea that "you can't alienate what you don't own." Those who allow a debtor unrestrained...
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...
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...
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...
Although Article 9 of the
Uniform Commercial Code has attempted to make perfection an easily attainable
goal for secured parties, mistakes still occur, and many of them prove fatal to
the secured creditor's perfected status. The secured party in a...
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...
Despite a pro-secured creditor treatment of cash proceeds, the Uniform Commercial Code puts at least one significant limitation on the secured party's ability to recover cash proceeds upon the debtor's default. If the debtor transfers cash proceeds...
Public filing of a financing
statement is the common method of achieving perfection of a security interest.
Article 9 is unforgiving towards debtor name errors because the debtor's name
is the gateway to the filing system. A recent federal district...
The Uniform Commercial Code
itself, scholarly articles, and judicial decisions have long emphasized the
importance of the debtor's name on an Article 9 financing statement. The
debtor's name is one of only three pieces of information...