Personal Property Secured Transactions

A person entering into a financing transaction should first determine whether Article 9 applies to the transaction. An incorrect conclusion -- in either direction -- can lead to a disastrous result, such as not perfecting a security interest that should be perfected or perfecting a security interest...

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Bibliographic Details
Published in:The Business Lawyer 2013-08, Vol.68 (4), p.1255-1282
Main Authors: Weise, Steve, Sepinuck, Stephen L.
Format: Article
Language:English
Subjects:
Agreements
Bank accounts
Banking
Bankruptcy
Certificates of title
Changes
Collateral
Commercial law
Credit unions
Debtors
Foreclosure
Inventory
Liens
Limited liability companies
Names
Personal property
Prefabricated buildings
Sales
Security interests
State court decisions
Survey—Uniform Commercial Code
Tax liens
Uniform Commercial Code-US
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Summary:A person entering into a financing transaction should first determine whether Article 9 applies to the transaction. An incorrect conclusion -- in either direction -- can lead to a disastrous result, such as not perfecting a security interest that should be perfected or perfecting a security interest under the "wrong" law. In general, there are three requirements for a security interest to attach; that is, to come into existence: the debtor must authenticate a security agreement that describes the collateral; value must be given; and the debtor must have rights in the collateral. A security agreement's description of collateral generally need not be specific; it must reasonably identify the collateral and, for most types of property, may refer to the collateral by its Article 9 type. A security interest in a vessel documented with the National Vessel Documentation Center cannot be perfected by filing a financing statement; the only way to perfect the security interest is to comply with the Commercial Instruments and Maritime Liens Act.
ISSN:0007-6899
2164-1838