Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Purchase Money Security Rules in Equipment and Inventory – Part Five

October 31, 2013 Corporate, Due Diligence

We are pleased to welcome attorney, Bennett L. Cohen of Cohen, Salk and Huvard, P.C., as a special guest blogger. Please read on for the seventh and final installment of Bennett’s seven-part blog series on Purchase Money Security Interest in Equipment and Inventory. Frequently Asked Question #8: Does a Borrower Obtaining Purchase Money Financing Create a Default Under the Security Agreement Between the Borrower and its Blanket Lien Lender? The…READ MORE

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Purchase Money Security Rules in Equipment and Inventory – Part Six

October 24, 2013 Corporate, Due Diligence

We are pleased to welcome attorney, Bennett L. Cohen of Cohen, Salk and Huvard, P.C., as a special guest blogger. Please read on for the sixth installment of Bennett’s seven-part blog series on Purchase Money Security Interest in Equipment and Inventory. Frequently Asked Question #7: How Does a Lender Obtain a PMSI in Inventory? A purchase-money secured party who finances inventory for a borrower (or in the case of a seller, retains…READ MORE

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[NEW] California Enacts 2010 UCC Article 9 Amendments

October 18, 2013 Revised Article 9

First Corporate Solutions is pleased to report that on October 4, 2013, California governor Jerry Brown signed CA Assembly Bill 502, making California the latest state to enact the 2010 Amendments to Article 9 of the Uniform Commercial Code.  The new filing rules will go into effect on July 1, 2014. View a full-text copy of the bill here. In an interesting turn, California has adopted neither Alternative A nor Alternative B (read more about…READ MORE

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Purchase Money Security Rules in Equipment and Inventory – Part Five

October 17, 2013 Corporate, Due Diligence

We are pleased to welcome attorney, Bennett L. Cohen of Cohen, Salk and Huvard, P.C., as a special guest blogger. Please read on for the fifth installment of Bennett’s seven-part blog series on Purchase Money Security Interest in Equipment and Inventory. Frequently Asked Question #5: How Does a Lender Obtain a Purchase Money Security Interest in Equipment?  A purchase money secured party who finances specific equipment for a borrower…READ MORE

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Purchase Money Security Rules in Equipment and Inventory – Part Four

October 10, 2013 Corporate, Due Diligence

We are pleased to welcome attorney, Bennett L. Cohen of Cohen, Salk and Huvard, P.C., as a special guest blogger. Please read on for the fourth installment of Bennett’s seven-part blog series on Purchase Money Security Interest in Equipment and Inventory. The Official Comment to Section 9-324 contains the following examples which demonstrate the application of the priority rules as they affect proceeds of inventory constituting accounts: "9.…READ MORE

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Listing Multiple Authorizing Parties on a UCC3 Amendment

October 02, 2013 UCC, Due Diligence

Box 9 of the UCC3 Amendment form asks the UCC  filer to input the name of the party that is authorizing the amendment. In some instances, a UCC amendment will be authorized by the debtor, but in most cases the secured party of record will be the authorizing party. Many UCC records include more than one secured party though, and this can cause confusion about how to complete the amendment form. Unfortunately, the official instructions…READ MORE

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