BarbriSFCourseDetails

Course Details

This CLE course will discuss requirements for security documentation, UCC rules for perfecting the security interest, and the pitfalls encountered with competing liens and hidden liens that may trump the lender's lien priority.

Faculty

Description

The UCC sets forth specific requirements for a security agreement to be enforceable against a debtor, including that the security agreement contains an adequate description of the collateral. Perfection rules vary according to the type of collateral.

UCC practitioners must know potential pitfalls and exercise due diligence to ensure that security interests attach, are perfected, and priority-protected, as most dramatically illustrated in some recent court decisions.

Lenders' counsel should also identify, assess the risk, and deal with situations where secret or competing liens on UCC collateral may arise, whether before or after the closing of a loan. Failing to address and deal with these risks adequately can lead to losing the senior secured lender's lien priority.

Listen as our authoritative panel of finance practitioners reviews requirements for UCC security documentation, rules for perfection, and pitfalls encountered with competing liens and hidden liens that may jeopardize the lender's lien priority.

Outline

  1. Security documents
    1. Security agreement: relevant language
    2. Description of the collateral
  2. Perfection of the security interest
    1. Perfection by filing
      1. UCC 1 financing statement, Article 9 requirements
      2. UCC 3 amendment or termination statement: lessons from Motors Liquidation
      3. Rules for trusts
  3. Priority and other liens
    1. Competing liens: PMSIs and contractual subordination
    2. Hidden liens

Benefits

The panel will review these and other key issues:

  • What were the fundamental changes in the UCC Article 9 amended rules related to filing financing statements?
  • What are the rules for perfecting a security interest, and what pitfalls can the lender encounter?
  • What are the lessons from the lender's loss of priority in some recent court decisions?
  • What due diligence can counsel for senior secured lenders conduct to help identify the presence of existing secret or competing liens?