Floor Planners Carjack UCC Revision

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Since the “Secured Transactions” Title of the UCC was revised several years ago, consignments to auto dealers are fraught with peril.

Before entering into a consignment with a dealer, and certainly before a vehicle is delivered, the consignor must first check for any finance agreements with the proposed consignee-dealer filed (in Virginia, at the State Corporation Commission) by a creditor. In the case of an auto dealer, there almost certainly will be a finance agreement with a floor planner.

Next, the consignor must give well-advanced notice to any such creditor of the intention to deliver certain, specific vehicles to the dealer, on consignment.

Then, the consignor must file a UCC Financing Statement of his own, before the delivery of the vehicles to the dealer.

Please see full article below for more information.

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