UCC3 Financing Statement Amendments: Avoiding Loss of Lien Perfection or Priority
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Banking and Finance
- event Date
Thursday, June 20, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will brief counsel on the proper use of the UCC3 amendment form and its electronic equivalent, identify surprising traps for the unwary that can result in the loss of perfection or priority of a lender’s security interest, and offer best practices for secured parties to avoid unnecessary risks and costly mistakes.
Mr. Grodner's practice focuses primarily on commercial transactions, secured transactions, commercial finance, opinion letters, commercial real estate and gaming law. He has an extensive practice representing lenders in large commercial transactions, locally, regionally and nationally. He authored or co-authored articles dealing with secured transactions, commercial real estate and other business law issues, and also presented on issues concerning loan documentation, secured transactions, ethics and professionalism in the transactional context and real estate law.
Mr. Hodnefield is a frequent speaker on Revised Article 9 search and filing issues who has written several articles and white papers on the subject that have been published in The Secured Lender, NPRRA Record, as well as in CSCFlashTM. Mr. Hodnefield is an active participant in the International Association of Commercial Administrators (IACA) Secured Transactions Section and formerly served on the Board of Directors of the National Public Records Research Association. In addition to his role at CSC, Mr. Hodnefield has served as an adjunct professor at the University of Minnesota Law School, where he taught courses on public records and business ethics. Prior to joining CSC, he was President of US Corporate Services, a national UCC service provider.
The UCC3 amendment is used to change information regarding the collateral and parties or indicate changes in effectiveness of the financing statement.
While creating and filing a UCC3 record may seem straightforward, amending a UCC financing statement can be fraught with hidden risks and pitfalls. The effect of UCC3 amendments may not be what the filer expected – the termination that does not terminate or the assignment that does not assign. If not used properly, a UCC3 may not achieve the secured party's desired result, or worse, can jeopardize the secured party's ability to enforce its security interest.
Listen as our authoritative panel of commercial finance practitioners identifies potential risks when filing or failing to file UCC3 amendments. The panel will offer best practices for secured parties to avoid risks resulting in the loss of perfection or priority.
- Introduction and overview of UCC3 amendments
- Party amendments: effect on the financing statement
- Collateral amendments: effect of various actions
- Assignments: effect and use
- Termination: when required, effect and traps for the unwary
- Continuation of effectiveness: timing and tips
- Correcting mistakes in UCC3 amendments
- Post-filing events: actions required to remain perfected
The panel will review these and other relevant issues:
- When amendments to UCC financing statements are required and when they are not
- Termination statements: the secured party’s obligation to file and risks for searchers
- What are the most common traps for the unwary in filing UCC3 amendments, and how and when can lenders correct mistakes?
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