A secured party relies on its properly filed financing statement to allow enforcement of its security interest against a transferee when the debtor disposes of collateral. Generally, the security interest remains effective against the collateral following a transfer, unless the
UCC Expert’s Corner: Terminations, Continuations, and Bankruptcy
Secured parties tend to be cautious about filing any UCC records after a debtor files for bankruptcy. Violations of the automatic stay or discharge injunction can have serious consequences for the offending secured party. However, secured parties may file certain
Georgia – UCC Article 6, Bulk Sales Transactions, Repealed Effective July 1
On May 6, 2015, the governor signed Georgia Senate Bill 65, which made changes to several areas of the state’s commercial law. One of these changes was the repeal of UCC Article 6, Bulk Sales Transactions. The repeal becomes effective
Oklahoma – UCC Article 9 2010 Amendments Enacted June 4
In early 2012, Oklahoma was one of the very first states to introduce legislation to enact the 2010 Amendments to UCC Article 9 (the “2010 Amendments”). Ironically, the state was almost the very last to enact the 2010 Amendments. Finally,
Florida – SB 526, Effective July 1, Relates to Methods for a Notary to Verify Documents Among Other Changes
The governor signed Senate Bill 526 on May 14, 2015. The new law will revise the methods for a notary to verify documents and provide clarification of “reliable electronic means” of verification. The new law becomes effective on July 1.
UCC Expert’s Corner: Court Finds UCC Record did not Perfect Judgment Lien in Personal Property
State law may require use of the UCC financing statement for purposes other than those within the scope of Article 9. For example, law other than Article 9 may require a claimant to perfect judgment liens or other statutory liens
UCC Expert’s Corner: Old Financing Statement Perfected New Security Interest
Can a secured party rely on an old financing statement to perfect a new security interest? That is a question lenders often ask when entering into a new transaction with an existing client. It was an issue before the court
UCC Expert’s Corner: Court Finds “All Assets” Insufficient to Describe Collateral in Security Agreement
Secured parties generally have a lot of flexibility in how they describe the collateral on a UCC financing statement. The financing statement only needs to reasonably identify the assets subject to the security interest. The secured party may describe the
UCC Expert’s Corner: Termination Statement Filed by Mistake Proves Costly for Secured Party
In a long-anticipated decision, the United States Court of Appeals for the Second Circuit finally resolved a case where the issue was whether a termination statement filed by mistake was nevertheless effective. The stakes were high because the allegedly terminated
Mistakenly Authorized UCC Termination Statement Costs Secured Party $1.5 Billion
On January 21, 2015, the U.S. Court of Appeals for the Second Circuit issued a decision that might make secured parties rethink how they authorize third parties to file termination statements. The secured party authorized debtor’s legal counsel to file