Avoid Common Mistakes in Collateral Descriptions under Article 9

Recorded: March 24, 2010

Presenters: Professor Richard Dole

Duration: 1 hour

Price: $249 / $199 for Affiliation Members

 

Without an effective collateral description in the security agreement, a financial institution is unsecured, and without an effective one in the financing statement ,  a financial institution’s security interest is voidable in bankruptcy.  You want to avoid these types of mistakes and that is our focus in this webinar.

UCC Article 9 governs secured transactions in personal property and fixtures coast-to-coast.  The basic documentation under Article 9 is a security agreement and a financing statement, both of which must contain effective descriptions of the collateral. You can mistakenly have an ineffective collateral description when, for example:

• The Debtor doesn’t authorize even a model collateral description . 
• Collateral is misclassified  under Article 9.

We will be discussing how to circumvent these pitfalls and the importance of understanding:

• The necessity of Debtor authorization of collateral descriptions.
• Per se ineffective Security Agreement and Financing Statement collateral descriptions. These descriptions leave a financial institution unsecured.
• The extent to which Security Agreement and Financing Statement collateral descriptions must differ. The statutory requirements for security agreement descriptions and financing statement descriptions have important differences.
• Dealing with the complex Article 9 classifications of collateral. Using factual collateral descriptions as a safe harbor. An accurate factual description of collateral can avoid misclassification of collateral under Article 9.

BIO: Professor Richard Dole

Professor Dole graduated with distinction from Cornell Law School in 1961 where he was a Ford Foundation Fellow. He received his S.J.D. from the University of Michigan Law School in 1966. He joined the Law Center faculty in 1978 as a full professor after teaching at the University of Iowa College of Law for 14 years.

Professor Dole is a commercial law expert and a scholar of bankruptcy, consumer protection, and creditors¿ rights and debtors¿ protections. He has written a treatise on Article 9 of the Uniform Commercial Code and has been a consultant on Bankruptcy Revision to the Unites States Senate Judiciary Committee.

Professor Dole has been a member of the American Law Institute since 1977 and has chaired the Texas Commission on Uniform State Laws. Professor Dole has been a visiting research scholar to the University of Tokyo Faculty of Law and a visiting scholar of the Institute for Monetary Studies of the Bank of Japan, the Japanese Federal Reserve

Continuing Professional Education Credit

Delivery Method: Group Internet-based       CPE Credits: 1
Program Level: Overview       Prerequisites: None       Advance Preparation: None

  

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