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Category Archives: Uniform Commercial Code

Creating a Blanket Lien – A New Case Shows the Importance of Syntax

How should collateral be described in a “blanket” security agreement? The goal is to include all of the debtor’s personal property. But using the term “all assets” or a similar phrase in a collateral description can be either a disaster; or a lifesaver for lenders and their counsel. Matter of Sterling United, Inc., 2016 WL 7436608 (2d Cir 12/22/16) is an object lesson on how language which is legally necessary to expand the term “all assets” can create controversy if carelessly drafted. Some background:  Uniform Commercial Code Article 9 defines a list of generic types of collateral which, if all of them are used in a collateral description, … Continue reading

Posted in Uniform Commercial Code |

Alternative A v. Alternative B – Can the Imperfect Attain Perfection?

California’s current legislative session has just gotten under way, and coming soon will be a bill to amend Article 9 of the Uniform Commercial Code, which governs security interests in personal property.  This package of amendments was promulgated by the Uniform Law Commission (ULC) in 2010.  For the most part it consists of technical fine-tuning, with one important and controversial, exception.  This has to do with how to list the name of an individual debtor on a form UCC-1 Financing Statement. Presently, Article 9 provides that in order to perfect a security interest in the personal property of a “registered organization” such as a corporation, limited partnership, or … Continue reading

Posted in Uniform Commercial Code |