David A. Gallo & Associates LLP handles UCC actions including but not limited to disputes involving promissory notes, guarantees, security instruments, conversion, and replevin. Article 9 is an article under the Uniform Commercial Code that oversees secured transactions or transactions that involve debts and creditors’ interest in the secured property. Essentially, Article 9 is designed to regulate the creation of security interests and the enforcement of those interests, including remedies such as foreclosure or replevin. If you are involved in a commercial dispute implicating your rights or obligations under a security agreement, our legal team is here to help. You can contact a commercial transaction lawyer from David A. Gallo & Associates LLP today to learn more about what we can do for you.
Article 9 is the statute that establishes protections for both creditors and borrowers. If you are a borrower, meaning a business owner who needs to borrow assets from a lender, you will need to ensure that documents presented by your lender aren’t too broad in scope and still include protections offered by the Uniform Commercial Code. Having the right legal team in your corner can help ensure your interests are protected and that you are not taken advantage of.
The first thing you need to understand about UCC Article 9 is the concepts of attachment and perfection. Attachment is when a debtor and a creditor can reach an agreement on a security interest in one of the debtor’s pieces of personal property. Once both parties agree on the piece of property, they will create a formal document stating the property will be used as collateral, should the debtor be unable to pay off their creditor at any point.
Perfection, in this context, refers to the process by which a security interest is established and made enforceable via a validated security agreement and a UCC-1 financing form as a matter of public record. If there are multiple creditors seeking compensation for the piece of property listed as collateral, the creditor on the security agreement will have priority over the other creditors.
UCC Article 9 is a complex statute, and if you are a business owner, you need to have a team of experienced New York City and Long Island, NY commercial litigation lawyers on your side to protect you at every turn. Contact David A. Gallo & Associates LLP today to schedule your initial consultation and so we can get working on your case.