By Walter Reynolds on Most of us are familiar with that old saw “location, location, location”. While location might enhance the value of real estate, including the location as part of the collateral description in the UCC financing statement can limit the protections provided to a secured creditor and may provide a strategy for attack by a bankruptcy trustee. … Continue Reading
By Porter Wright on If you are a lender/mortgagee and your borrower/mortgagor is adding more real property collateral to the mortgage (in Ohio), how do you retain your first priority position in all mortgaged property while adding that property to the mortgage? This question is especially relevant when the borrower is assembling property as part of a development. The … Continue Reading
By Porter Wright on A recent change to Ohio’s agricultural lien law clarifies the interplay between security interests governed by Article 9 of the UCC and those governed by Ohio’s agricultural lien statutes, and confirms the ruling of the Sixth Appellate Court of Erie County in Ohio Dept. of Agriculture v. Central Erie Supply & Elevator Association, 2013-Ohio-3061. Central … Continue Reading
By Porter Wright on Secured lenders extending financial accommodations to borrowers whose collateral includes perishable food items should consider certain specific risks associated with such collateral. Notably, the Perishable Agricultural Commodities Act of 1930 (PACA) creates a statutory trust for the benefit of persons who originally sell the perishable agricultural commodities to such borrowers and are not paid. The … Continue Reading
By Porter Wright on In this hypothetical, we will consider the following circumstances. “Farmer Bob” grows wheat (i.e., crops) “AgBank” has loaned Farmer Bob money secured in part by his wheat “Massive Grain Elevator” wants to purchase Farmer Bob’s wheat Can Massive buy the wheat and not get the shaft from AgBank? It depends. In 1985 Congress passed the … Continue Reading
By Porter Wright on With the persistence of a sputtering economy, secured lenders are leaving no stone unturned in their hunt for collateral security from borrowers and guarantors alike. This search for more collateral has resulted in a renewed interest in taking investment property collateral, including stocks, bonds, and mutual funds. It can often be quite difficult for the secured creditor … Continue Reading
