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The Limits of Liens in Proceeds Under Article 9
This is the third in a series of articles on liens in proceeds under Article 9 of the Uniform Commercial Code.
In this the third and final installment of a series of articles, we address the intersection of Article 9 liens in proceeds and the U.S. Bankruptcy Code.
In the event of a bankruptcy, the Trustee or debtor will often try to argue that the secured party's pre-petition liens do not apply to assets arising post-petition. More specifically, the Trustee or debtor will argue that section 11 U.S.C. ' 552(a) of the Bankruptcy Code prohibits the recognition of after acquired collateral provisions. Generally, the secured party should zealously oppose such claims, citing ' 552(b)(1), which extends a creditor's pre-petition lien to the post-petition proceeds of pre-petition collateral. That provision reads as follows:
(b)(1) Except as provided in Sections 363, 506(c), 522, 544, 545, 547, and 548 of this title, if the debtor and an entity entered into a security agreement before the commencement of the case and if the security interest created by such security agreement extends to property of the debtor acquired before the commencement of the case and to proceeds, products, offspring, or profits of such property, then such security interest extends to such proceeds, products, offspring, or profits acquired by the estate after the commencement of the case to the extent provided by such security agreement and by applicable nonbankruptcy law, except to any extent that the court, after notice and a hearing and based on the equities of the case, orders otherwise. (Emphasis added.)
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?