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#410295 - 08/18/05 06:54 PM Leased Equpiment

Bank has loan to Company A secured by equipment leased to Company B.
Company A is registered in Kansas.
Company B is registered in Illinois.
Bank has perfected lien in all equipment, accounts, contracts, general intangibles, chattel paper owned by Company A with UCC filed in Kansas.
Company A is going to file a UCC-1 on equipment leased to Company B in Illinois.
How can bank reduce potential exposure by giving notice to third parties, who are conducting searches on Company B, that the leased equipment is the bank’s collateral on loan to Company A?

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Article 9
#410296 - 08/19/05 01:41 PM Re: Leased Equpiment
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
I'm not sure if you can reduce exposure any more. The fact that "A" is filing a UCC on "B" does tell potential lenders of "B" that "B" is leasing equipment. "B" financial statement should not show that equipment as an asset and should also show the lease debt as a liability. You might ask for periodic reports from "A" asking for status/details of leased equipment as to lessee, lease terms, equipment description, and location.
Just working here until I get my letter from Hogwarts.

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