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UCC Expert’s Corner: Court Refuses to Admit Uncertified Copies of UCC Records into Evidence

By Paul Hodnefield, Associate General Counsel for CSC

In exchange for gaining the benefits of a UCC security interest, Article 9 places the burden of proof on the secured party to demonstrate compliance with all statutory perfection requirements.  A secured party may do everything necessary to perfect its security interest yet find enforcement of its rights frustrated if it cannot offer sufficient evidence of compliance with Article 9.  A recent case, Community Shores Bank v. Babbitt’s Sports Center, LLC., 2012 Mich. App. LEXIS 1528 (Mich. Ct. App. Aug. 2, 2012), demonstrates the risks a secured party faces if it fails to satisfy the burden of proof.