Recent Posts

The Ongoing Issue of the Debtor's Name on UCC Article 9 Financing Statements
Posted on 25 Jul 2012 by Margit Livingston

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... Read More

Perfecting Security Interests in Manufactured Homes
Posted on 19 Feb 2009 by James P. Nehf

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... Read More

The Uniform Commercial Code and the Transfer of Mortgage Notes
Posted on 27 Jul 2012 by Margit Livingston

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... Read More

Debtor Name Changes under U.C.C. Article 9
Posted on 30 Mar 2010 by Margit Livingston

Dealing 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 the... Read More

Continuity of Perfection Following a Merger
Posted on 6 Jan 2009 by James P. Nehf

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... Read More

Purchase Money Inventory Security Interests Under U.C.C. Article 9
Posted on 4 Oct 2008 by Margit Livingston

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... Read More

Rights in Collateral and Estoppel Under U.C.C. Article 9
Posted on 8 Oct 2008 by Margit Livingston

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... Read More

Prioritizing Creditors: The Doctrine of Equitable Marshaling
Posted on 10 Jan 2011 by Margit Livingston

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... Read More

Article 9 Security Interests in Commercial Tort Claims
Posted on 4 Nov 2011 by Margit Livingston

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... Read More

UCC Article 9 Security Interests and Voidable Sales Contracts
Posted on 18 Nov 2011 by Margit Livingston

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... Read More

Professor Margit Livingston on Mishaps Involving a Termination Statement, a Correction Statement, and a Last-Minute Financing Statement Under U.C.C. Article 9
Posted on 21 Aug 2012 by Margit Livingston

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... Read More

Alternatives "A" and "B": Debtor Names Under Revised UCC Section 9-503
Posted on 26 Oct 2011 by Jennifer Martin

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... Read More

Transfers of Cash Proceeds Under U.C.C. Article 9
Posted on 18 Dec 2009 by Margit Livingston

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... Read More

A New Twist on Debtor Names on U.C.C. Article 9 Financing Statements
Posted on 29 Oct 2012 by Margit Livingston

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... Read More

2010 Amendments to Article 9: Debtor's Name on Financing Statements
Posted on 18 Nov 2010 by Margit Livingston

Excerpt: 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... Read More