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#12593 - 06/13/01 03:21 PM Article 9 - Transition Flow Chart
baddog Offline
New Poster

Registered: 05/01/01
Posts: 13
Loc: Hinton, OK, USA
I really appreciate the link you have provided, titled "Transition Flow Chart." But, I have one problem with the chart itself. The second question from the top asks if the filing was accomplished "under" or "outside of" the old Ch. 9. Then, the responses are "yes" or "no."
To me, that does not call for a Y or N response. Instead, I would think it more appropriate to have the responses as "under" or "outside of."
As it is, it is confusing to me. Am I alone on this?

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Article 9
#12594 - 06/14/01 02:14 PM Re: Article 9 - Transition Flow Chart
Mary Beth Guard Offline

Platinum Poster

Registered: 10/31/00
Posts: 765
Loc: Oklahoma City, OK
That part of the flow chart does appear to be confusing, but here's what they intended and why it makes sense:

There are some transactions and types of collateral which will be covered by Revised Article 9 (RA9) which were not covered under Old Article 9 (OA9). For example, commercial tort claims are a new category of collateral under RA9. Let's say you were a lender who had made a loan secured by a commercial tort claim prior to RA9. You would have had to perfect, if at all, outside Article 9, since OA9 didn't cover that type of collateral, but let's say that for whatever reason you didn't actually take steps to perfect. Then let's take a situation where the lender's security interest SHOULD have been perfected under old Article 9, but the lender, for whatever reason, didn't actually perfect it under old Article 9.

In either of these instances, when using the flow chart, you would answer "No" to the question of whether your security interest was perfected under Old Article 9 or outside Old Article 9. If you had not perfected under or outside OA9, you would need to take steps under RA9 to perfect before July 1, 2001 (or whatever date the Revision becomes effective on in the applicable state, since some states have nonuniform effective dates). Or, if circumstances were different and you HAD either perfected under OA9 or outside OA9, you would answer "Yes" on the flow chart.


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#12595 - 06/21/01 12:07 AM Re: Article 9 - Transition Flow Chart
baddog Offline
New Poster

Registered: 05/01/01
Posts: 13
Loc: Hinton, OK, USA
Thanks a lot. That clarififies it somewhat. So, I'm thinking now that the real thrust of that question is "Was the security interest perfected...?" The issue seems to be PERFECTION and not the "under" or "outside" matter. In that light, it makes sense now. Am I closer?

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#12596 - 06/21/01 08:23 AM Re: Article 9 - Transition Flow Chart
JSD Offline
Gold Star

Registered: 10/30/00
Posts: 452
Loc: USA
Could some one guide me to the Transition FLow Chart - I have done a search and have not been successful. I know it is out there somewhere but can't seem to find it...Thanks!

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#12597 - 06/21/01 08:52 AM Re: Article 9 - Transition Flow Chart
Michele Petry Offline

Platinum Poster

Registered: 06/23/00
Posts: 687
Loc: Louisville, KY USA
You can find the link to the transition chart in our BankersOnline Launchpad. You'll find the link under the section for Article 9.

[This message has been edited by mpetry (edited 06-21-2001).]

_________________________
Michele Petry
BankersOnline.com

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#12598 - 06/21/01 01:12 PM Re: Article 9 - Transition Flow Chart
BeechFlyboy Offline
Power Poster

Registered: 10/27/00
Posts: 5079
Loc: Soaring over Georgia
Another good source for information on Rev UCC 9 that includes the same transition flowchart, but also some other good references not listed on the launchpad is available at http://www.hewm.com/news/articles/ucc.pdf

------------------
Jim Bedsole, CRCM, CBA, CFSA

Opinions expressed are my own, and do not necessarily reflect those of my employer.

_________________________
Jim Bedsole, CRCM, CBA, CFSA
My posts - my opinions

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