This article discusses a recent New York appellate decision, which held that an attorney was liable for per se legal malpractice for failure to file a UCC-1 financing statement on behalf of his lender client. The article also discusses the availability and use of UCC insurance as a method of preventing such liability.
This article discusses, in general, the benefits offered by the UCC Insurance Policies offered by some of the major land title insurance companies. It highlights the relevance of such insurance in light of recent case law involving revised Article 9 of the Uniform Commercial Code, and bankruptcy issues that are addressed by UCC insurance. The article also discusses the newest UCC insurance products, including insured search and insured filing services.
This article analyzes, under Revised Article 9 of the UCC, the issue of whether a UCC-3 Financing Statement, intended only as an Amendment but with the Termination box also checked inadvertently, constitutes an effective termination of the original Financing Statement with respect to all of the collateral, or only an amendment partially releasing the specific collateral described therein.
This article discusses and analyzes a decision by the Washington Supreme Court, Puget Sound Financial, L.L.C. v. Unisearch, Inc., which upheld an express limitation of liability to $25 contained in the defendant UCC search company's invoice. The article also discusses a lender's exposure to loss for incorrect UCC filings, and the importance under revised Article 9 of accurately describing the debtor's name in UCC filings. The article further discusses the use of UCC insurance as a solution to the problem encountered by the lender in this case.
This article briefly describes and analyzes mezzanine-financing transactions, then discusses the availability and scope of title-insurance endorsements and UCC insurance endorsements, respectively (copies of which are attached as exhibits), in connection with such transactions.
This article discusses whether, and under what circumstances, a security interest in an option to purchase real estate constitutes an interest in personal property (in which event the applicable Uniform Commercial Code perfection provisions, as modified by the recent revisions to Article 9, would apply) or real estate (in which event the interest would be need to be properly recorded in the applicable real estate records). The article also discusses the impact of the recent revisions to Article 9 of the UCC with respect to this issue, as well as applicable bankruptcy court decisions. The article further contains suggestions for lenders on how to protect and properly perfect security interests in such options to purchase.
This article discusses and analyzes a UCC decision by the Delaware Federal District Court, which held that a secured creditor's security interest in proceeds of a real estate contract was not an "interest in or lien on real estate" of the kind specifically excluded from the scope of Article 9 of the Uniform Commercial Code, but was in the nature of a general intangible interest. The court also ruled that the debtor had failed to properly perfect its interest in the sale contract, and that "good faith reliance" on the address provided by the debtor is no defense to a failure to file a financing statement in the proper jurisdiction. The article also discusses the issue of "realty v. personalty" in general, and describes the efficacy of UCC insurance in dealing with the issues raised by this case.
This article summarizes the rules regarding security interests in sales and assignments of promissory notes under Revised Article 9 of the Uniform Commercial Code, which was enacted into law in all 50 states in 2001. The article discusses the rules that apply with respect to "true sales" of promissory notes and to loans secured by interests in promissory notes, and whether the recording of an assignment of mortgage is still necessary -- or sufficient -- under Revised Article 9 to perfect a security interest. The article further discusses issues with respect to enforcement of the security interest, and the interplay of Revised Article 9 and Article 3 of the Uniform Commercial Code where the note itself has been lost or is not in possession of the party seeking to enforce the security interest.
This article discusses a ruling by the Bankruptcy Appellate Panel of the Tenth Circuit Court of Appeals, In re Kinderknecht, which ruled that the bankruptcy court erred in declining to grant the avoidance of a lien perfected by a UCC-1 filing that named the debtor only by his commonly used nickname rather than his proper name. The article discusses in detail the requirements for properly stating the debtor's name (whether individual or business) to insure perfection and priority of the lender's security interest. The article also discusses other case law in this area (both before and after the revisions to Article 9 of the Uniform Commercial Code) and discusses the benefits of UCC insurance with respect to the issues raised in the Kinderknecht (and similar) cases.
