Secured Transactions | L4530
This course covers the law of secured transactions in personal property. It is not a securities course. The main focus of this course is the granting of a security interest in collateral in exchange for a loan and the priority among creditors to the collateral in case the debtor defaults on its obligation to repay. Secured transactions can be involved in a wide variety of legal representations, including transactional matters and litigation. The Secured Transactions Class is designed to provide students with a working understanding of Article 9 of the Uniform Commercial Code and how it comes into play in these transactions. For background and understanding we will look at various types of financing transactions that might give rise to a secured transaction, including loans and installment sales, and take a brief look at some other Articles of the UCC where applicable. The class will approach the subject of secured transactions from both a technical perspective and a practical perspective. You will learn how to draft the documents needed to create a UCC security interest and secure obligations by personal property collateral (including the security agreement and financing statement), and how to "perfect" that security interest. We will cover such items of personal property as inventory, accounts, equipment, fixtures, general intangibles, instruments and chattel paper, investment property, and deposit accounts. We will discuss priorities among competing secured creditors, how to search UCC records to determine the existence of competing secured creditors. We will also discuss issues created when the collateral is sold, when the owner of the collateral changes its name or business form, and the types of personal property with respect to which liens are not created under the UCC - but rather under some other law. We will also discuss foreclosure rights and procedures in the event the credit transaction goes bad. The subject is governed largely by statute - the Uniform Commercial Code - and students will be expected to read the relevant sections of the UCC as assigned as well as certain assigned cases. While we may talk about some mind twister type issues raised by language in Article 9, that will be the exception, as the main focus is to provide students with an understanding of the subject sufficient so that they have a good confidence level if asked to take on a secured transaction as a practicing lawyer (or summer intern).
Credit Hours: 3
ULW: This course does not satisfy the Upper Level Writing requirement (ULW)