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 public...
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 recent
bankruptcy case found itself in danger of...
If a secured party properly
perfects its security interest by filing a financing statement in the
appropriate public office, it can normally be assured that it will prevail over
a lien creditor (including the trustee in bankruptcy) in a fight over the
debtor's accounts. In a recent bankruptcy...