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 […]
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 […]
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 […]
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 […]
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.
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: What is the first integral decision a potential purchaser of a distressed business must make? ANSWER: Assuming that the seller has not already […]
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 a security interest. Such a security agreement grants […]