How do you perfect a security interest in proceeds?
To obtain a perfected security interest in (1) the equity interest of a company that owns an FCC license, secured parties should (a) require broadcaster to opt into Article 8 of the UCC, (b) have the parent of the broadcaster grant a security interest in all its general intangibles and investment property, and (c) …
What are proceeds of collateral?
“Proceeds” is defined as whatever is acquired on the sale, lease, or other disposition of property, whatever is collected on or distributed on account of collateral, rights arising out of collateral, and certain claims arising out of the collateral.
What is personal property Article 9?
Personal property, which includes both tangibles, especially goods, and intangibles, for example, accounts receivables, is to be distinguished from real property. Under new section 9-109(d)(11) the creation of a security interest in real estate is outside the scope of new Article 9.
What is an Article 9 lease?
Professor Livingston writes: Article 9 of the Uniform Commercial Code applies to any “transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract.” U.C.C.
Can you have a security interest in cash?
To perfect a security interest in a deposit account, the lender must establish “control” over that account. This would be in addition to the security agreement by which the borrower pledges its cash deposit accounts to the lender as security for the loan.
Are cash proceeds automatically perfected?
One class of proceeds that generally cannot be perfected by filing is “cash proceeds.” This group includes money, which must be perfected by possession, and deposit accounts, which must be perfected by control.
Why are secured transactions important?
When a loan is secured, there is more protection for the lender and there is a greater risk to the buyer if a default occurs. It is important for debtors and creditors to understand secured transactions and to make an informed choice about whether the loan is right for their needs.
Who does Article 9 apply to?
security interests
Journal Article: In general, Article 9 of the Uniform Commercial Code applies only to security interests in personal property and fixtures, not liens on real property.
Does UCC Article 9 apply to mortgages?
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. UCC § 9-203(b)(3)(A).
