The nationwide group of experts responsible for writing and updating the Uniform Commercial Code has just finished revising UCC Article 9 which relates to security interests between lenders and borrowers. (more…)
Posts Tagged ‘Article 9’
Change is Coming to the Way Lenders Perfect Security Interests!
Tuesday, December 7th, 2010Adequacy of Collateral Descriptions
Friday, February 26th, 2010Under current and prior versions of Article 9, the adequacy of the description of collateral has been a highly litigated issue. Generally speaking, the description in the security agreement must be specific enough to allow the collateral to be clearly identified from that description. The description in a financing statement can be somewhat more general as it is intended only to place parties on notice of the need to make a contact with the secured creditor to determine the precise extent of the security interest. As Courts have interpreted these various rules, conflicting results have occurred in various jurisdictions. (more…)