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UCC 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. […]


Lender liability and overreach

Lender Liability Claims are Alive and Well: A Case Study

Lender Liability Law Protects Distressed Borrowers from Unfair Practices The relationship between a lender and borrower can be complex. The borrower wants capital to run and grow its business, and the lenders want to earn a return and eventually get their principal back. If the borrower complies with the terms of the loan, all is […]


Consignment agreement for goods in bankruptcy

Consignment Arrangements: Dos & Don’ts to Avoid Getting Hurt

What Happens When Your Consignee Becomes Distressed and What You Can Do I was speaking with a client yesterday about consignment arrangements. What we discussed should be of interest to any company that sells goods using a consignment arrangement, and I thought I would share. What is a Consignment Arrangement? In a consignment arrangement, the […]


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 […]


363 Sale vs Article 9 Sale

90 Second Lesson: Selling Collateral in a 363 Sale vs Article 9 Sale

Why a Secured Creditor May Push to Sell Collateral Outside of Bankruptcy   Editors’ 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: An investment banker recently wrote in, saying: “I am currently […]


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 […]


PUBLIC NOTICE OF UCC ARTICLE 9 AUCTION: The Credit Junction Holdings, Inc.

Notice of UCC Article 9 Foreclosure Auction of Commercial Loans & Intellectual Property PLEASE TAKE NOTICE that on September 10, 2019, at 11:00 a.m., New York City, New York time, at the offices of Holland & Knight LLP, 31 West 52nd Street, 12th Floor, New York, NY 10019, a public sale shall be conducted of […]


90 Second Lesson: What is a “UCC Article 9” Sale?

QUESTION: Jack B. emailed, asking, “Please explain what an Article 9 sale is. My lawyer said that if I give a security interest to a lender, it can do an Article 9 sale.  What is an Article 9 sale?” ANSWER:   Well, Jack, Article 9 of the Uniform Commercial Code governs the relationship between a […]


Managing Cash and Stakeholders to Turn Around a Company

Insufficient liquidity shrinks the range of options for a financially distressed business. The metaphor of a melting ice cube is often used to illustrate the situation. When the cash runs out and the company is unable to pay its employees or vendors, the ice cube has melted. The business has failed, and recoverable value has collapsed.


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