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Debtors Uniform Commercial Code (UCC)

Husch Blackwell LLP

Is Electricity A Good Or A Service Under The Priority Provisions Of 11 U.S.C. § 503(B)(9)

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Section 503(b)(9) of the Bankruptcy Code allows an administrative expense “for the value of any goods received by the debtor within 20 days before the date of the commencement of a case under this title in which the goods...more

ArentFox Schiff

Understanding Suppliers’ Rights and Remedies in Retail and Hospitality Bankruptcies

ArentFox Schiff on

On May 14, Outfox Hospitality LLC, the parent company of the retail chain Foxtrot Market, along with its affiliates, filed for Chapter 7 bankruptcy protection in the Bankruptcy Court for the District of Delaware, with the...more

Troutman Pepper

Can I Enhance My Prospects for Payment Through a Purchase Money Security Interest? - Creditor’s Rights Toolkit

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A seller of goods may gain priority over other creditors, and enhanced prospects for payment, by taking and perfecting a purchase money security interest (PMSI) in the goods sold to a customer. This article will explain what...more

Blank Rome LLP

Predominant Purpose: What’s That?

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THE 2022 AMENDMENTS TO THE UNIFORM COMMERCIAL CODE (THE “2022 AMENDMENTS”) constitute a sweeping expansion and revision of the UCC. Among other things, the new rules greatly facilitate financing of chattel paper leases and...more

Holland & Hart LLP

The Vendor's Lender: Secured Creditor's Rights in Receivables Are Paramount

Holland & Hart LLP on

Accounts receivable serve as an important source of collateral – indeed, receivables and other rights to payment represent the lifeblood of asset-based lending, securitizations and factoring arrangements. Article 9 of the...more

Seward & Kissel LLP

Building Blocks, LTL 2.0 DOA, FTX First Try, and UST Last Chance Saloon

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BlockFi’s Chapter 11 plan progresses with conditional court approval | Cointelegraph - United States Bankruptcy Court for the District of New Jersey recently conditionally approved Blockfi’s disclosure statement. If the...more

Paul Hastings LLP

How Would You Like to Pay? The Risks of Lending to Borrowers Who are Paid in Crypto

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As the adoption of cryptocurrencies as a medium of exchange continues to expand within our economy, more and more companies are now accepting payment in digital currencies from their customers. Today you can use...more

Troutman Pepper

Decision by New York's Highest Court Results in Account Debtor Owing Its Counterparty's Debts

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In Worthy Lending LLC v. New Style Contractors. Inc., New York’s highest court, the New York Court of Appeals, has ruled that a security interest includes a lender’s right to force the borrower’s account debtors to remit...more

Seward & Kissel LLP

Converting Celsius to Fahrenheit, “Carnival Barking” Not Allowed, Plastiq Surgery, Core Business and Mojo Rising

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Below is our initial take on recent bankruptcy-related developments: Bankrupt cryptocurrency lender Celsius Network LLC announced this week that it has chosen the proposal from Fahrenheit to exit bankruptcy. Fahrenheit, a...more

Troutman Pepper

NY Court of Appeals' Ruling Results in Account Debtor Owing Its Counterparty's Debts Under UCC Article 9

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In Worthy Lending LLC v. New Style Contractors. Inc., the New York Court of Appeals held that a security interest includes a lender’s right to force the borrower’s account debtors to remit payments directly to the lender,...more

Blank Rome LLP

Leases - November 2022

Blank Rome LLP on

CASE LAW DEVELOPMENTS - This survey covers several 2021 cases involving disputes among parties to equipment leases or other personal property financings and cases involving third parties claiming to have related rights or...more

Carlton Fields

Imperfect Perfection: Florida Has Zero Tolerance for Creditors Who Misname Debtors in UCC-1 Financing Statements

Carlton Fields on

“What’s in a name? That which we call a rose by any other name would smell just as sweet.” Not so fast, Juliet. While this sweet sentiment may have fared well in William Shakespeare’s, Romeo and Juliet, it does not in...more

Faegre Drinker Biddle & Reath LLP

Do You Know Your Debtor’s Name? Minor Mistakes in UCC-1 Financing Statements Might Be Seriously Misleading

Zero tolerance continues to be the name of the game in drafting Uniform Commercial Code (UCC) financing statements. While in some states, minor mistakes in UCC financing statements may be forgiven, in at least Florida, no...more

Troutman Pepper

Bankruptcy Court Holds Title Holder Consent Is Enough to Give Collateral Rights to Debtor to Grant Liens

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On April 28, the U.S. Bankruptcy Court for the N.D. of Oklahoma in Kirtley v. Mabrey Bank (In re Rudick) held that an entity other than the debtor may grant a lien on the debtor’s property, affirming the legal standard that...more

Cadwalader, Wickersham & Taft LLP

In Depth: A Perfection Problem with a Hidden Solution

Most U.S. lenders are familiar with the need to file a Uniform Commercial Code financing statement to perfect a security interest in collateral. Most lenders are also aware that financing statements must be updated if the...more

Lowenstein Sandler LLP

Do Not Take Consignments Lightly

Lowenstein Sandler LLP on

While things worked out for vendors who did not file a UCC-1 in the Sports Authority Chapter 11, you may not be so lucky. Never assume that it is not necessary to properly perfect a consignment arrangement by filing a...more

Troutman Pepper

Fifth Circuit Affirms Bank’s Perfected Delaware UCC Lien Has Priority Over Texas Oil Producers’ Statutory Lien on Proceeds

Troutman Pepper on

The Uniform Commercial Code was established to provide predictability and conformity in commercial transactions. Certain states have adopted nonstandard UCC provisions, which create an unreliable and unpredictable market for...more

Adler Pollock & Sheehan P.C.

That’s Bogus! Protecting Your Business Against Fraudulent UCC Financing Statements

In Rhode Island, a “bogus” lien on your business’s assets is always just a few clicks away. Indeed, without consent, warning, or any factual basis, any individual with internet access can allege a secured interest in any...more

Cozen O'Connor

Yeah, About That Consignment Agreement … How You Can Lose Your Goods in a Retail Bankruptcy

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You just heard a rumor that your largest retail customer is in financial distress and may file for bankruptcy. After a moment of panic, you review your consignment agreement with the retailer (this assumes that you have a...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part III, Landlords, Leases, and Licenses

Bowditch & Dewey on

In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part II, Goods and Services

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In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Bowditch & Dewey

Getting Paid in Bankruptcy – Part I, Lender Claims

Bowditch & Dewey on

In this series, we look at how various payment rights are treated in bankruptcy. A summary like this could not possibly address every right that might arise in any given bankruptcy case. We have omitted several of the...more

Troutman Pepper

Lender Beware: Two Recent Bankruptcy Cases Highlight Importance of Diligence in UCC-1 Filings

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Lenders should view as cautionary tales two recently handed down decisions regarding UCC-1 financing statements and the perfection of security interests. On December 20, 2019, the U.S. Bankruptcy Court for the District of...more

Mayer Brown

Bankruptcy trustee appeals Seventh Circuit’s ruling on sufficiency of UCC collateral description to US Supreme Court

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Last October we highlighted an important ruling issued in September 2019 by the Seventh Circuit in the bankruptcy proceeding of In re I80 Equipment, LLC. The Circuit Court in that case reversed a decision from the lower...more

King & Spalding

Eighth Circuit Rules No Successor Liability for Buyer from Asset Foreclosure Sale

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On September 19, 2019, the U.S. Court of Appeals for the Eighth Circuit affirmed a lower court’s conclusion that a purchaser at a private foreclosure sale has no successor liability to a debtor’s unpaid creditors. ...more

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