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Financing Accessions: A Real-World Analysis in Question and Answer Format
Consider how you would address this familiar situation: Your borrower wants to finance a crane that will be attached to and used on a motorized piece of construction equipment, but does not need you to finance the construction equipment itself, only the crane attachment. On its face, this all sounds simple enough, but as many lenders and lessors have discovered, financing a unit that will be attached to equipment financed by another lender can be more challenging than it appears. Especially if the other item is a titled motor vehicle.
When financing an item of equipment (an “Accession”) that may become physically attached to other equipment (the “Other Equipment” and together with the Accession, the “Whole”), lenders (we will call them “Accession Lenders”) or lessors (“Accession Lessors”) should approach these situations with caution. The holder of an interest in the Other Equipment (we will call it the “Other Equipment Lender”) can take priority over the Accession Lender's security interest in the Accession or even the ownership interest of an Accession Lessor.
This issue is even more complicated where the Other Equipment is a motor vehicle, trailer or other equipment subject to a state's certificate of title law. Under Section 9-303 of the Uniform Commercial Code (UCC), local laws govern perfection and priority in goods covered by certificates of title. It should be noted that these laws are not uniform in their application and 9-303 is clear that the preemption is only for goods covered by certificates of title, not those that are merely eligible for titling.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?