News & Analysis as of

Uniform Commercial Code (UCC) Default

Morrison & Foerster LLP

UCC Foreclosure Commercially Reasonable

In a recent case, U.S. District Judge Edgardo Ramos ruled that a foreclosure sale governed by Article 9 of the New York Uniform Commercial Code (UCC) was “commercially reasonable” when viewed as a whole, denying claims made...more

Kerr Russell

Back In The Deep End – Managing Risk In Uncertain Times

Kerr Russell on

While none of the current economic data indicates an imminent recession, we need look no further than the financial conditions of 2006 and 2007 to see how quickly the tide of the economy can shift. Warren Buffett once...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

Whitman Legal Solutions, LLC

How Contracts End – Planning for Contract Termination and Beyond

This article discusses termination provisions parties should consider when they enter into a contract, the contract termination process, and when parties should consider post-termination obligations....more

Holland & Knight LLP

Borrowing and Renting in the Metaverse: The Disputes Are Yet to Come

Holland & Knight LLP on

Second Life, which was brought to virtual life by Linden Lab in 2003, is widely acknowledged as the first "metaverse" in which individuals could acquire, build on and, if they wished, sell virtual land. Coming to life long...more

Moritt Hock & Hamroff LLP

UCC Sales Held Not Subject To Cuomo Executive Order Barring Mortgage Foreclosures

A recent New York State Supreme Court judge has answered the question of whether Governor Andrew Cuomo’s Executive Order 202.8 precluding mortgage foreclosures for ninety (90) days, applies to Uniform Commercial Code (“UCC”)...more

Dechert LLP

Mezzanine Foreclosures in the Time of Coronavirus: Chapter 2

Dechert LLP on

As a follow up to our OnPoint from last week, Mezzanine Foreclosures in the Time of Coronavirus, regarding a New York County Supreme Court’s halting of a mezzanine UCC foreclosure sale, here is our promised update. ...more

Williams Mullen

Commercial Lease Enforcement in Virginia during the COVID-19 Pandemic

Williams Mullen on

While it is clear that the current COVID-19 crisis has touched every part of society and the economy, the governmental response and protections have not been uniform. The federal, state and local guidance has largely focused...more

Bilzin Sumberg

Legal Magic: Turning Real Property Foreclosures Into Uniform Commercial Code Sales

Bilzin Sumberg on

Remedies for defaults under loans secured by real property varies on a state-by­-state basis. In the eastern part of the country, enforcement is mostly by mortgage foreclosure. In the western states, there are enforcement...more

Moritt Hock & Hamroff LLP

Equipment Lessor's Damages Calculation Ruled Unenforceable

In a related update, we called attention to risks and pitfalls to lenders and lessors when seeking prepayment premiums and other charges upon the occurrence of an event of default: Lenders Beware: Acceleration May Defeat...more

Pillsbury Winthrop Shaw Pittman LLP

New York Bankruptcy Court Strikes Liquidated Damages Provision and Related Guarantee as Unenforceable Penalty

New York bankruptcy court cautions against liquidated damages provisions that are “invariant to the gravity of the breach.” Liquidated damages provisions must be based on a “causal link” between the anticipated harm and...more

Ballard Spahr LLP

NY enacts new disclosure requirements for use of auto “kill switches”

Ballard Spahr LLP on

New York has enacted legislation that requires creditors to provide new disclosures when using devices to remotely disable vehicles, commonly referred to as “kill switches.”  The new law took effect immediately upon its...more

Polsinelli

Loan Enforcement and Creditors’ Rights

Polsinelli on

At times, lenders lose the promissory notes on defaulted loans. Lost notes are problematic because, in order to have standing to foreclose, a lender may be required in many states, including in New York, to possess the...more

Blank Rome LLP

A Look at the Friendly Foreclosure Option

Blank Rome LLP on

When a debtor defaults on a loan secured by personal property, the secured lender has several options for repayment. One option is to sell the collateral securing the debt pursuant to Article 9 of the Uniform Commercial Code...more

Sheppard Mullin Richter & Hampton LLP

Delaware Court Provides Critical Guidance as to the Commercial Reasonableness of a UCC Article 9 Foreclosure Sale

Secured lenders often resort to non-judicial foreclosure sales of personal property upon a borrower’s default. Article 9, Part 6 of the Uniform Commercial Code requires that every aspect of such a sale must be commercially...more

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