As discussed in last issue’s column, revised Article 9 greatly expands the definition of “proceeds” so that a security interest in specific collateral will automatically extend to after-acquired property that is derived from the original collateral, even if there is no disposition of the original collateral.
What does UCC Article 9 cover?
Article 9 is a section under the UCC governing secured transactions including the creation and enforcement of debts. Article 9 spells out the procedure for settling debts, including various types of collateralized loans and bonds.
Can UCC secured real property?
The UCC does not address transactions or financing of real property. The code has the effect of law only when it is adopted by the particular state. California has largely adopted the UCC, with some changes. Indeed, the UCC has been adopted by all 50 states of the U.S, although with variations.
Is real property covered under Article 9?
In general, Article 9 of the Uniform Commercial Code applies only to security interests in personal property and fixtures, not liens on real property.
What is an Article 8 security?
Under UCC Article 8, a bank, broker or other person that in the ordinary course of its. 31. business maintains securities accounts for others and is acting in that capacity is referred to as a. 32. “securities intermediary”.2 A “securities account” is an account to which a “financial asset” is or.
Does UCC Article 9 apply to consumer transactions?
Credit extended for the operation of a business is not consumer debt and even consumer goods or consumer intangibles taken as security would not make the transaction a consumer transaction (though as noted above, some provisions of Revised Article 9 apply to transactions secured by consumer goods even though the credit …
What is a UCC 1 308?
What is a UCC 1 308? UCC 1-308 Performance or acceptance under reservation of rights. (1) A party who, with explicit reservation of rights, performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved.
Can a UCC be subordinated?
It has a shot at the collateral only after the first lender gets what it’s owed. The first lender could, however, agree to subordinate its security interest in favor of the second lender. I.e., switch positions. The first lender would file a UCC3 Subordination form to record the switch.
What is the difference between a mortgage and a deed of trust?
A mortgage involves only two parties: the borrower and the lender. A deed of trust has a borrower, lender and a “trustee.” The trustee is a neutral third party that holds the title to a property until the loan is completely paid off by the borrower.
Does Article 9 apply to mortgages?
Transfer of Ownership Article 9 applies to both a security interest in a mortgage note to secure an obligation and to the rights of a buyer of a mortgage note. Generally, the seller or person creating a security interest to secure an obligation must “authenticate” a security agreement describing the mortgage note.
Who files a UCC termination?
When the debtor has satisfied all amounts owed to the lender, a UCC-3 termination statement (now called a UCC termination statement) is routinely filed to terminate the security interest perfected by the UCC-1 financing statement.
