Unsecured Creditors Prevail Against the UCC-1

In the realm of lending, the perfected Uniform Commercial Code-1 (“UCC-1”) is the hallmark of security.  If a secured asset has value, and the liens are valid, what other issues are there to consider?  Well, in at least one instance, underlying intercompany notes were the issue.  And because of the nature of these notes, the perfected UCC-1 lost its shine. In a bankruptcy case filed in the 5th District, the U.S. Debtor parent company had a number of lending agreements with different banks.  Subsidiaries of the parent company, including foreign […]