Posts Tagged ‘Uniform Commercial Code’

Amendments to Article 9 Are In Effect Now: Are You Ready?

Wednesday, July 3rd, 2013

On July 1, 2013, at least 38 states, including Indiana, Illinois and Kentucky, have adopted amendments to Article 9 of the Uniform Commercial Code.  Some of the highlights include:

  • Using the name on an individual’s driver’s license or state-issued ID card for filing financing statements against individual debtors. (more…)

Kentucky Case Finds Liability for Wrongful Termination of Financing Statement

Tuesday, April 26th, 2011

In a case recently decided in Kentucky, Secured Party A filed a termination statement relating to a financing statement originally filed by Secured Party B.  The Court held that Secured Party A was not authorized to file the termination statement on behalf of Secured Party B.  As a result of the wrongful termination, Secured Party A was liable to Secured Party B for damages incurred by the wrongful termination.  (more…)

Terms and Condition Statements – An Opportunity and a Caution

Tuesday, March 29th, 2011

Every state has laws that control commercial transactions, most notably the Uniform Commercial Code.  Under these laws, many different aspects of the sale and its impact on both sides of the deal are defined as to warranty, revocation, rights of collection and numerous other aspects.  These laws almost universally provide that they apply only if the parties have not otherwise agreed in their sale contract.  This gives the parties the ability to define for themselves what terms and conditions will apply to the transaction.  (more…)

Highlights of the Proposed Amendments to Article 9

Thursday, January 27th, 2011

The group of experts that studied the Uniform Commercial Code have proposed various amendments to Article 9.  These amendments are already under consideration by four state legislatures, including Indiana, and are expected to be considered by other state legislatures as well.  The goal is to have all states enact the amendments by July 1, 2013, the uniform effective date.  What follows are some of the highlights of the proposed amendments. (more…)

Change is Coming to the Way Lenders Perfect Security Interests!

Tuesday, December 7th, 2010

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…)

Buyer of a Vehicle Drives Off Free and Clear of the Lien of the Lender

Friday, October 22nd, 2010

Financing automobiles is tricky.  If you are financing an automobile as equipment or for an end user, the proper way of perfecting your security interest is to note the lien on the motor vehicle title.  What many lenders do not know, however, is that this is not sufficient if the vehicle is being held as inventory.  (more…)

When is a Lease Not a Lease?

Tuesday, September 28th, 2010

In a sign of the current economic times, an Indiana court was faced with a dispute between competing creditors relative to their rights to a piece of equipment.  One creditor was the equipment lessor who was leasing the equipment to the debtor.  The other creditor was a secured lender holding a blanket security interest in all of the equipment of a borrower.  The determination of which creditor would get the equipment turned on whether or not the “leasing arrangement” was a secured transaction or a true lease.  (more…)

Documenting Delivery of the Initial Financing Statement to the Debtor in Indiana

Tuesday, July 27th, 2010

Indiana’s version of the Uniform Commercial Code includes a provision not contained in the Ohio, Illinois or Kentucky versions of revised Article 9.  This provision in Indiana relates to the delivery of the initial financing statement to the debtor.  No later than thirty days after the financing statement is filed, the creditor must furnish a copy of the financing statement to the debtor.  (more…)

Membership Interests in an LLC – Perfecting a Security Interest

Wednesday, March 24th, 2010

The Uniform Commercial Code provides for several methods by which a secured   party can perfect a security interest in the membership interest of a limited liability company, particularly when such membership interest is uncertificated.  (more…)

Quick Perfection of Purchase Money Security Interest

Monday, February 22nd, 2010

A purchase money security interest transaction is virtually never susceptible to bankruptcy preference attack.  An exception to this is where the bank has not perfected the security interest on or before twenty days after the debtor receives possession of the property constituting the collateral.  (more…)