News & Analysis as of

Uniform Commercial Code (UCC) Collateral

Balch & Bingham LLP

Alabama Enacts Uniform Commercial Receivership Act

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On May 15, 2024, Alabama became the thirteenth state to adopt a version of the Uniform Law Commission’s Uniform Commercial Real Estate Receiver Act (the “Act”). The Act seeks to bring more direction and clarity to...more

Cadwalader, Wickersham & Taft LLP

A New Age of PerFFFection June 2024 - Potential Impact of UCC Article 12 on Fund Finance Transactions

At the bottom of the stack in investment fund structures, there are generally “real” assets—things like equity interests in portfolio companies, mortgage loans, commercial receivables, maybe even bricks and mortar. Fund...more

ArentFox Schiff

Avoiding Collateral Damage: Taking the (Re)Pledge [Part III]

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This constitutes the third in a four-part series that discusses the practice of repledging (sometimes referred to as “rehypothecation”), how standard agreements allow for repledging, the treatment of repledging under current...more

Tonkon Torp LLP

Uncertainty in Oregon for Crypto Assets Under Commercial Law

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While some states have moved to adopt model Uniform Commercial Code (UCC) provisions to provide a clear legal framework for commercial and secured transactions involving crypto assets, Oregon has yet to take action. This is a...more

Lathrop GPM

Digital Assets as Collateral Under the Uniform Commercial Code

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In 2019, the American Law Institute (“ALI”) and Uniform Law Commission (“ULC”) began developing amendments to the Uniform Commercial Code (“UCC”) to adapt to the changing landscape of transactions involving digital assets,...more

Proskauer - Blockchain and the Law

Part II: NFT Lending — Legal Issues Involving Secured Transactions under the UCC, Pre- and Post-Article 9 and 12 Amendments

As discussed in Part I of this series, NFT-based lending is pioneering a new avenue of investment and activity on the blockchain that will enable new and innovative use cases. In this Part II, we will discuss the implications...more

Cadwalader, Wickersham & Taft LLP

Taking Control August 2023 - Control or Control Agreement

As most of our readers know, the majority of subscription facilities are secured by the right to call capital and receive capital contributions from the fund’s investors and the bank deposit account into which those capital...more

Shumaker, Loop & Kendrick, LLP

Did You Lose Your Security Interest in That Collateral? The New Way to Perfect Security Interests Using Updated UCC Forms

Beginning July 1, 2023, many states began accepting revised Uniform Commercial Code (UCC) forms to perfect security interests. These revised forms were adopted earlier this year by the International Association of Commercial...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

Bracewell LLP

New UCC Article 12: Foreseeable Issues with Using Cryptocurrencies and NFTs as Collateral

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Now that state legislatures across the country are working to approve the much anticipated Article 12 to the Uniform Commercial Code (UCC), it is time to prepare for transactions with cryptocurrencies and non-fungible tokens...more

Goodwin

Taking Security Interests in Human Reproductive Tissue: Clarifying Lender Options under Federal and State Law

Goodwin on

Can human reproductive tissue (“HRT”) held by a fertility clinic serve as collateral for a loan to (or investment in) the fertility clinic? In short, the scope and extent of governmental regulation addressing the sale of or...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

A&O Shearman

The Scope of Article 8 Mandatory Choice-of-Law Rule

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The scope of the mandatory choice-of-law rule set forth in Uniform Commercial Code (UCC) section 8-110(a)(1), which provides that “the local law of the issuer’s jurisdiction . . . governs . . . the validity of a security,” is...more

Amundsen Davis LLC

Cross Collateralization Generally Not Created By Note Alone

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From time to time, we review loan files for clients to confirm they have the collateral they think they do. Assume a lender has a properly perfected $1,000,000 mortgage loan and a $500,000 line of credit secured by all of the...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

Husch Blackwell LLP

Advancing Agriculture: Security Interests and Article 9 Challenges (Part 1)

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Welcome to Episode 2 of Advancing Agriculture with your hosts from Husch Blackwell, Stephanie E. Kaiser and Elizabeth Benefield, where they discuss practical tips and advice on various topics related to ag lending. In this...more

King & Spalding

Uncertainty in the Airline Industry: An Overview of Slots, Gates and Routes Pledged as Collateral in the Wake of COVID-19

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In recent years, several major US airlines have entered into loan facilities secured solely by certain of its slots, gates and routes (“SGR”). This alert provides (i) a brief overview of SGR, (ii) how SGR collateral may be...more

Snell & Wilmer

Nevada Court of Appeals Clarifies What Constitutes a Breach of the Peace When Repossessing Vehicles

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Most jurisdictions, including Nevada, have long-held that a secured creditor may exercise the self-help remedy of involuntary repossession of collateral provided that the repossession does not result in a breach of the peace....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

Foley & Lardner LLP

Seventh Circuit Guidance on Collateral Description in Financing Statements

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In a previous blogpost, we explained the technical requirements for financing statements and the potential risks of failing to satisfy them, highlighting a case where the court ruled, under a prior version of the Puerto Rico...more

Dorsey & Whitney LLP

Seventh Circuit Reaffirms Notice Principle of UCC Financing Statements

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Last year, the U.S. Bankruptcy Court for the Central District of Illinois determined in In re I80 Equipment, LLC that a financing statement which referenced a description of the collateral, but did not contain or attach the...more

Kramer Levin Naftalis & Frankel LLP

Financing Statement Collateral Descriptions that Indicate Collateral by Reference Are Permissible under Article 9 of the UCC

Recently in In Re: 180 Equipment, LLC, a case of first impression, the United States Court of Appeals for the Seventh Circuit determined that the Illinois version of Article 9 of the Uniform Commercial Code (Illinois UCC)...more

Troutman Pepper

A Win for Lenders: Seventh Circuit Finds UCC-1 Collateral Description Reference Sufficient

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In a win for lenders, on September 11, the U.S. Court of Appeals for the Seventh Circuit reversed the U.S. Bankruptcy Court for the Central District of Illinois, holding that the collateral description in the UCC-1 financing...more

Moritt Hock & Hamroff LLP

The Realities of Accession Priority

Lenders often finance items that are installed in and/or affixed to their customers’ other leased or financed assets. When these items, known as “accessions,” are part of the transaction, they are usually “perfected” by the...more

Dorsey & Whitney LLP

Revisiting Financing Statement Collateral Descriptions

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Recently, two federal courts issued decisions defining the detail needed in collateral descriptions in financing statements. This is significant because if the collateral description is not sufficient then the financing...more

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