Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Texas Legislature Passes Certificate of Title Bill Negating Effect of Clark Contracting Decision
On June 19 of this year, Texas Governor Rick Perry signed into law Senate Bill 1592, S.B.1592, 81st Leg., Reg. Sess. (Tex. 2009) (“SB1592″), bringing an end to an intensive five-month effort to negate the broader effects of a decision handed down by a bankruptcy court in the Western District of Texas in late 2008 relating to the perfected status of a lender on a loan purportedly secured by six equipment trucks. Clark Contracting Serv., Inc. v. Wells Fargo Equip. Fin. (In re Clark Contracting Serv., Inc.) 399 B.R. 789 (Bankr. W.D. Tex. 2008). As reported in the August 2009 issue of LJN's Equipment Leasing Newsletter (“Secured Transactions: The Transfer of Security Interests,” Alan M. Christenfeld and Barbara M. Goodstein; available online at www.ljnonline.com/issues/ljn_equipleasing/28_7/news/152458-1.html), the decision in Clark Contracting left many purchasers of motor vehicle loans questioning their status as secured lenders with respect to obligors in the underlying motor vehicles. Fortunately, the Texas Business Law Foundation and the American Securitization Forum were quick to react to the Clark Contracting decision when it was published in February 2009, promoting legislation to amend the Texas Certificate of Title Act (“TCTA”) (Tex. Transp. Code Ann. ”501.001-501.159 (2007)) and other Texas statutes governing titled assets to clarify the meaning of the provisions of those statutes governing the assignment of liens in titled assets and the effect of that assignment on the perfected status of assignees.
As previously reported, the court in Clark Contracting found that Wells Fargo Equipment Finance (“Wells Fargo”), a purchaser of a secured loan made by CIT Group/Equipment Financing Inc. (“CIT”) to Clark Contracting Services, Inc. (“Clark”) for the purchase of six equipment trucks, did not have a perfected security interest in those trucks because CIT failed to apply with the county assessor-collector to have the certificates of titles for the trucks reissued to reflect Wells Fargo as the lienholder. As a result, Wells Fargo was relegated to the status of an unsecured creditor in the bankruptcy proceedings of Clark. The court's decision was inconsistent with what is believed to be the current state of the law in all of the other 49 states, many of which either have statutes that expressly provide that re-titling is unnecessary or have courts that have interpreted state law in a manner consistent with such statutes. The decision was also directly in conflict with the practice of many of the finance companies and banks that make motor vehicle loans in Texas, including lenders that financed their loans through structured warehouse facilities and securitizations.
Other States
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.