Investment Securities

The investment securities portion of this year's Uniform Commercial Code Survey begins with two cases involving security interests but is dominated by a unique and fascinating case implicating judgment creditors' rights in the indirect holding system. UCC section 9-313(a) provides that a s...

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Bibliographic Details
Published in:The Business Lawyer 2014-08, Vol.69 (4), p.1215-1226
Main Author: Bjerre, Carl S.
Format: Article
Language:English
Subjects:
Agreements
Arizona
Bank accounts
Bank assets
Bankruptcy
Collateral
Debtors
Financial assets
Investments
Limited liability companies
Markets
Perfection
Plaintiffs
Property
Restricted securities
Secured transactions
Securities
Securities analysis
Security interests
State court decisions
Statutory law
Surveys
Survey—Uniform Commercial Code
Uniform Commercial Code-US
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Summary:The investment securities portion of this year's Uniform Commercial Code Survey begins with two cases involving security interests but is dominated by a unique and fascinating case implicating judgment creditors' rights in the indirect holding system. UCC section 9-313(a) provides that a security interest in a certificated security may be perfected by delivery to the secured party, and section 8-301 provides that delivery of a certificated security occurs when the purchaser acquires possession. Meanwhile, In re Strata Title LLC involved the UCC Article 8 and 9 aspects of the operating agreement for an entity called Tempe Tower LLC, which owned an Arizona office property. Article 8's definition of 'security' is helpfully supplemented by section 8-103, which relevantly provides that an interest in an LLC is not a security 'unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this Article or it is an investment company security.'. Adapted from the source document.
ISSN:0007-6899
2164-1838