WSFS claimed priority status based on its prior perfected security interest in the Disputed Consigned Goods and Soffe's failure to file a UCC financing statement
covering these goods.
The security interest granted by Crawford was never perfected through a properly filed financing statement
, Mixon said.
Under the U.C.C., a lender creates a security interest in a coop by having the borrower execute a security agreement and this security interest is then perfected by filing a financing statement
known as a U.C.C.-l.
(3) Second, a UCC-1 financing statement
identifying the collateral must be filed.
Capital Management Services filed a financing statement
on his professional association, Richard Grasby, P.A., secured by commissions inventory, fixtures, equipment and accounts receivable.
"I would recommend that ag creditors get junior liens on all the customer's farm products, accounts, inventory, general intangibles and equipment, at a minimum." Also, filing a UCC-1 financing statement
is required to perfect your security interest on these types of collateral.
Less is more when describing collateral in a UCC-1 financing statement
that is filed to perfect a security interest in a debtor's assets.
Sometimes the seller would file a UCC-1 financing statement
with words such as "Goods delivered to ABC Company remain the property of XYZ Company, and title does not transfer to ABC Company until a sales transaction takes place between the parties."
Thereafter, GM filed for Chapter 11 protection and its unsecured creditors' committee challenged the perfection of JPM's security interest in the term loan collateral because of the pre-petition termination of JPM's UCC-1 financing statement
covering the term loan collateral.
One of the requirements for obtaining a valid security interest with priority over future security interests and liens in the same collateral is for the creditor to properly identify its collateral in both (i) the security agreement executed by its customer, and, just as importantly, (ii) the publicly filed Uniform Commercial Code (UCC) financing statement
A consignor can perfect its interest in its consigned goods by filing a UCC financing statement
, describing the goods, in the correct jurisdiction.