Also, the DOF had said the PPSA 'simplified the process as
security interest may be perfected by registration of a notice with the registry, possession of the collateral by the secured creditor or by control of investment property and deposit account,' such that 'on perfection, a
security interest becomes effective against third parties.'
If a consignment transaction fails to meet the rigid definition of a consignment under UCC Section 9-102(a)(20), the consignor may still enjoy prior rights to its consigned goods if it can prove that the transaction is a "true consignment" under state law, True consignments are not governed by UCC Article 9; therefore, true consignments do not require a consignor to file a UCC financing statement and provide notice of its consignment interest to secured creditors with a prior perfected blanket
security interest in the consignee's inventory as a condition for having priority status in the consigned goods.
April Kuehnhoff, an NCLC staff attorney, said the decision was narrow, limited to defendants whose "principal purpose" is the enforcement of
security interests.
Given the language of the CSA (particularly referencing paragraph 5(b) of the CSA), whereby it is made clear that the Transferee receives the Eligible Credit Support free and clear from all restriction and that the intention of the parties is, in essence, a "true sale," and that no
security interest is created by virtue of the transfer.
Proprietary matters encompass the legal issues regarding the
security interest itself, including its creation, perfection and priority.
In this regard, a
security interest is typically created by agreement.
* What Is Perfection Of A
Security Interest And How Is It Accomplished;
At what point, along the continuum of transactions incorporating or featuring the right of set-off, (5) is a PPSA
security interest created?
Martino argued that when she signed a pre-approval letter for the credit card, the pre-approval acceptance certificate did not indicate contain any language about
security interest.
Negotiating a
security interest is always a tricky thing.
In contrast, the deemed
security interest arises 'whether or not the transaction concerned, in substance, secures payment or the performance of an obligation.
Pursuant to a much-criticised legal provision in Bulgaria, if a balance sheet insolvent debtor is declared judicially insolvent, this will invalidate by operation of law: (i) any performance of a financial obligation and (ii) any creation of a
security interest over any asset of the insolvency estate, in each case, made after the debtor became balance sheet insolvent.
