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Article 9

Incorporation by Reference in UCC-1 Filings

Incorporation by Reference in UCC-1 Filings

How Brevity in Financing Statements Can Lead to Insufficient Collateral Descriptions Our fast-paced society, coupled with the tendency for people to use shorthand in communications by emails and Twitter, influences everyone to look for ways to save time and be less verbose. When preparing and filing a UCC-1, however, brevity can be the filer’s enemy. […]


Buying a distressed business

90 Second Lesson: First Step Before Buying a Distressed Business

How Types of Sales Affect the Purchase of a Distressed Business   Editor’s Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it.   Question What is the first integral decision a buyer must make […]


Man drafting collateral description

6 Common Mistakes in Drafting Collateral Descriptions

Avoid These Costly Errors in Collateral Descriptions   Drafting can easily go awry. When collateral descriptions are drafted errantly in security agreements and financing statements, secured creditors may not get what they bargained for, and expensive disputes can bloom. A valid security agreement executed by the owner of the collateral and the secured party creates […]


Best Practices for UCC-3 Terminations and Continuations

Careless UCC-3 Termination Filings Have Costly Consequences   Lenders and borrowers are focused on potential workouts and refinancing of loans due to the COVID-19 pandemic. As such, UCC-3 terminations and continuations will be thrust into the spotlight. Under Article 9 of the Uniform Commercial Code (“UCC”), a UCC-3 is defined as a filing used to make or […]


Small businesses in bankruptcy can apply for PPP loans though risky

PPP Loans for Chapter 11 Debtors? Maybe…But You Have Other Options

The SBA’s Views, Court Rulings and Options for Your Company You need to restructure your debt and/or deal as soon as possible with assertive creditors. You want to preserve your company, and you would benefit (or already have benefited) from Paycheck Protection Program (PPP) funds as a bridge. What do you do? Can you risk […]


An investor hands over keys to a distressed asset as part of an assignment for the benefit of creditors, or ABC

Selling Distressed Assets: The Assignment for the Benefit of Creditors Alternative

An Alternative to Chapter 11 and Chapter 7 Liquidations Financially distressed companies faced with unlikely prospects for reorganization – and the creditors who can influence their decisions – often take advantage of the chapter 11 liquidation option, where the debtor’s assets can be sold free and clear of all liens, claims, and encumbrances. This leaves […]


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