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The Limits of Liens in Proceeds Under Article 9

By Frank Peretore
April 01, 2016

This is the second in a series of articles on liens in proceeds under Article 9 of the Uniform Commercial Code.

As illustrated in the first installment of this article, the continuation of a lien in proceeds can cause priority problems, and this becomes especially true when there is a conflicting security interest in the collateral to which the proceeds have been recast. Under Article 9, priority is generally based on the first to file or perfect. U.C.C. ' 9-322(a)(1).

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