UCC Article 9: Purchase Money Security Interests and Blanket Asset Lien Exclusions

When structuring secured loans, many lenders require that borrowers and any guarantors grant a security interest in all of their assets. These so-called liens have many exclusions, however. Purchase money security interests are super liens that can take priority over blanket liens when the transaction involves the purchase of goods. The rules of perfection can be tricky and full of traps for the unprepared.

There are many types of personal property outside the scope of Article 9, including insurance, tort claims, and judgments as original collateral. Other commonly excluded collateral is carved out as a matter of market practice.

Listen as our authoritative panel of finance practitioners discusses purchase money security interests and how they trump existing blanket liens. The panel will also discuss categories of collateral that are generally excluded from all asset collateral liens as outside the scope of Article 9 or those commonly excluded by virtue of contract.

1. Obtaining all assets collateral liens
2. Collateral excluded under the UCC
3. Legal or contractual restrictions
4. Obtaining purchase money security interests
5. Other exclusions

The panel will review these and other key issues:

• What personal property is outside the scope of Article 9 and thus not covered by a blanket lien?
• What type of borrower deposit accounts are typically excluded from blanket liens?
• What are the perfection requirements for a PMSI?