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...
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...
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...