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Unformatted text preview: . INTRODUCTION Applicable Law: Revised Article 9 (became law in NY and other states in July 2001) Old Article 1 o revised, but not adopted yet o no substantive difference between old article 1s 1-201(37) and new article 1, except that now it is split into 1-203 and 1-201(35) The UCC covers the movement of goods, the payment thereof, and the financing thereof. Llewellyn. Sales Buying and Selling Commercial Paper Paying Secured Credit Financing o borrowing money and using your property as collateral) Debtor/Creditor Enforcing Secured Transactions: how our legal system uses property interests to secure debt Two Broad Types of Property to Secure Debt: Personal Property o Our focus in this class o Statutorily based o Article 9 of the UCC Real Estate Mortgages o No uniform statute o Governed by centuries old common law of the states o Each state is different o Many of the principles that apply to personal property also apply here Three sources of Law for this course: Article 9 of the UCC Real Estate Mortgages Law (not uniform) Bankruptcy Code Creditor: anyone owed a legal obligation that can be reduced to a money judgment What is a sale? Typically, a sale is money given in exchange for ownership Is it only ownership? Also conveys possession, title, warranty What is a secured sale? When seller retains title to secure payment of the purchase price. Buyer promises to pay the purchase price (i.e., undertakes a debt obligation) in exchange for possession, title, warranty. But in a conceptual way, the seller retains ownership until the purchase price is paid. (ancient terms: secured sale conditional sale; sellers title vendors lien) 1 UCC definitions appear in two places of the UCC: 1-201 9-102 1-201(35) defines security interest as An interest in personal property or fixtures which secures payment or performance of an obligationThe retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under 2-401 is limited in effect to a reservation of a security interest. . CREDITORS REMEDIES UNDER STATE LAW (1) Unsecured debtors dilemma: Not easy to collect money owed to you Not sure what to do when you see things are going south . Self-help Unsecured creditors are not entitled to self-help measures. Unsecured creditors cannot seize property of the debtor to satisfy the debt, not even when the loan was used to buy the property the creditors wishes to seize (purchase money). Doing so could constitute tort of conversion or crime of larceny. Could also incur liability for wrongful collection practices....
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This note was uploaded on 04/17/2008 for the course LAW ? taught by Professor Harmon during the Spring '08 term at Touro NY.
- Spring '08