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Financing Statement Filed Without Debtors' Authorization
Under the Uniform Commercial Code (UCC), a secured party can perfect its lien on certain of a debtor's assets by the filing of a UCC-1 financing statement. However, Section 9-509 of the UCC provides that a party may file such a financing statement only if the debtor authorizes the filing: either expressly in an authenticated record or, more commonly, by executing a security agreement. The UCC does not specify when a debtor must provide such authorization, but the U.S. Bankruptcy Court for the Southern District of New York recently held that a debtor's written authorization need not precede the filing of a financing statement.
In re The Adoni Group
In In re The Adoni Group , 530 B.R. 592 (Bankr. S.D.N.Y. 2015), the secured party filed a financing statement before the parties had executed a security agreement, and without the debtor having otherwise authorized the filing in writing. However, because the debtor ultimately executed a security agreement, the court held that the debtor effectively ratified the filing and that the secured party's lien was thus validly perfected. In so holding, the court clarified that the term “authorize,” as used in Section 9-509 of the UCC, encompasses forward-looking authorization as well as retroactive ratification of a filed financing statement.
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.
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.
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.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?