Unauthorized UCC3 Termination Statement did not Support Tortuous Interference Claim By Paul Hodnefield, Esq. Nothing gives a secured lender heartburn faster than learning that someone has allegedly terminated its financing statement without permission. The lender will often assume that the
UCC Expert’s Corner: Extra Space in Debtor Name Makes Financing Statement Seriously Misleading
Extra Space in Debtor Name Makes Financing Statement Seriously Misleading By Paul Hodnefield, Esq. There is little margin for error when it comes to accuracy of the debtor name when filing a UCC financing statement. Even a seemingly minor error
UCC Expert’s Corner: Court Applies Former Article 9 Standard to Sufficiency of Judgment Lien Debtor Name
Court Applies Former Article 9 Standard to Sufficiency of Judgment Lien Debtor Name By Paul Hodnefield, Esq. Since 2001, those who file UCC records have been well aware that even seemingly minor errors in a debtor name can render a
UCC Expert’s Corner: Right Name/Wrong Field Renders Financing Statement Seriously Misleading
By Paul Hodnefield, Esq. Those who file UCC records have long been aware of the importance of filing under the correct debtor name. However, identifying the correct debtor name is only half the battle. The filer must also provide the
UCC Expert’s Corner: Court Holds That Middle Name Matters on Driver’s License
The 2010 Amendments to UCC Article 9, which took effect in most states on July 1, 2013, provided new rules for the sufficiency of an individual debtor name. Most states enacted a legislative option which required a financing statement to
UCC Expert’s Corner: Buyer Beware – Unauthorized Transfer Provides Secured Party With Multiple Causes of Action
By Paul Hodnefield, Esq. Debtors have been known to sell or otherwise transfer assets subject to a security interest without the knowledge of the secured party. When this occurs, the transferee often takes subject to the security interest, which can
UCC Expert’s Corner: Determining the Priority of Unperfected Security Interests with Simultaneous Attachment
On rare occasions, a security interest perfection or priority question may arise for which UCC Article 9 provides no answer. When that occurs, the courts must resolve the issue based on other factors. That situation occurred in a recent case,
UCC Expert’s Corner: Court Finds UCC Security Interest Superior to Set-Off Rights of Farm Products Buyer
Sorting out UCC security interests, agricultural liens, and Effective Financing Statements (“EFS”) filed under the Food Security Act (“FSA”) can be a challenge for both lenders and buyers of farm products. These three distinct but overlapping concepts all were issues
UCC Expert’s Corner: Court Denies Equitable Remedies Due to Secured Party’s Lack of Due Diligence
Thorough due diligence can help the secured party avoid later perfection and priority problems with a secured loan. In fact, the failure to conduct adequate due diligence may leave the secured party without access to equitable remedies, even if the
UCC Expert’s Corner: Court Finds UCC Financing Statement that Described LLC’s Property was Insufficient to Perfect a Security Interest in the Debtor’s LLC Membership Interest
A debtor’s membership interest in a limited liability company (“LLC”) will often serve as collateral for secured loans. The secured party, however, must be very careful to correctly perfect its security interest in that type of asset. Any mistake can