In the September/October issue of our Community Banker newsletter, we discuss a “lender’s golden ticket.,” which is UCC Priority.
An excerpt:
Being perfected in the collateral doesn’t always mean that your bank has priority in the loan collateral. “Perfection” means that the bank has completed the process required by the UCC to make a security interest in collateral in force and enforceable against third parties. “Priority” is the first-in-time ranking of that perfected security interest among lenders. The point of perfection is for your bank to claim priority over other claimants to the collateral.
You can continue reading the September/October issue here.
You can read past issues of Community Banker on our Newsletter page.
The Community Banker is prepared by attorneys at Olson & Burns P.C. to provide information pertaining to legal developments affecting the field of banking. In order to accomplish this objective, we welcome any comments our readers have regarding the content and format of this publication. Please address your comments to olsonpc@minotlaw.com.
