Latest Lending - UCC Topics

Commercial with Collateral as Operating Interest

12/08/2019

I have a commercial loan with collateral as "operating interest in wells." Do we need a mortgage, UCC or both to perfect a security interest in this? Also, is this collateral even considered real estate collateral?

2 Separate Security Agreements-1 for Each State?

06/16/2019

If we have a customer that has their business registered with the Delaware SOS however they live in ND, do we need to produce two separate security agreements, one for each state? I noticed this changes in the governing law section of LaserPro documents.

2 Security Agreements if File for 2 UCCs?

06/02/2019

When we have a borrower in one state but their collateral is located in another state, we will file a UCC where the debtor is located. Some Lenders want us to file in both states just to be safe but then that posed the question, should we be preparing two separate security agreements, one for each state as well? Also, if we have a borrower that has collateral in both states we have been just preparing one security agreement where the borrower is located and still filing two UCC's but we think we should be preparing two separate ones in this case also?

Collateral Change Field on a UCC Amendment

11/26/2017

I have a question regarding the Collateral Change field on a UCC Amendment. If the "Restate Covered Collateral" box is checked, does this intend to replace all prior collateral descriptions?

UCC 1 Financing Statement - Real Estate Collateral

11/06/2016

Is it necessary to file a UCC 1 financing statement when the bank takes a promissory note secured with real estate as collateral? We will file a Collateral Transfer of note and lien in the real property records.

Puchase-money security interest priority under UCC

07/24/2016

We have a "Purchase money Security Interest in all inventory, equipment, etc., per our UCC-1 filing. There are 4 other "All inventory, chattel paper, equipment ..whether now owned or hereafter acquired; all accessions...etc..." filings ahead of us that are current and have been continued and have not lapsed or been terminated. My question: If the company fails would we be in first place with the equipment purchased with our loan funds? I think not, but want to make sure.

Can UCC-1 financing statement be subordinated?

01/31/2016

Can a UCC-1 financing statement be subordinated?

Filing UCC-1 & Lien On Titled Collateral

06/28/2015

We are having a debate at work about filing a UCC-1 in addition to the Lien on Titled collateral, i.e., car, boat, truck. Is it standard practice? Is it advisable to file a UCC in addition to the Lien perfection on titled collateral and why? Also doesn't the UCC need to match the note and security agreement?

How to Perfect Lien on Farm Loan

02/23/2015

When doing a farm loan and we take Government Payments & Crop Insurance do we file a UCC or UCC1F to perfect our lien or is a Agricultural Security Agreement showing the Government Payments & Crop Insurance as collateral enough to perfect the lien?

Security Agreement if Purchase Piece of Equipment?

12/16/2013

I have a business loan that is secured by real estate and equipment purchased. The business has purchased another piece of equipment. I know that we will file another UCC-1 for the new equipment; however, do I prepare a Security Agreement also?

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Copying ID Documents

Question: I represent an unregulated lending entity which is a wholly owned subsidiary of a large cooperative. We lend (indirectly) in approximately 20 states.

Military Status and Foreclosure

01/26/2020

If our borrower hasn’t requested SCRA protection and is past due on her mortgage, can we start foreclosure as we normally would?

"Purpose" for a home improvement loan

01/26/2020

For a home improvement loan, is the Purpose = Home Equity?

CC Dispute- Purchase for Cancelled Trip

01/26/2020

We received a complaint from an account holder who used their credit card to purchase a trip on 7/3/18 for over $2,600 from a travel company. He provided evidence to us on 8/11/18 that the travel company had closed and the trip would not be offered and there would be no refund for what he had paid. The information he was provided from the travel company said the purchase was non-refundable and he had not purchased trip cancellation protection. He filed a dispute with us on 8/11/18 asking for credit for the cost of the trip. He did not make any payments on the account between 7/3/18 and 8/11/18, so it seems to me he would have a valid claim under both Reg. Z 1026.12 and 1026.13 (since he didn't/isn't going to receive the services he paid for and he filed his dispute within 60 days of the date of the statement the charge appeared on and he had not paid for the charge before he filed his dispute. Our bank's disputes department declined his claim, so he filed subsequent disputes, but was told each time that he was not entitled to a credit. I work in Complaints, which is where this claim has now landed, and I believe we need to credit him for the purchase. Is my thinking correct?

Collection Method Questions for HMDA

01/26/2020

This question has come up before but I have not seen a clear answer. If the application is NOT taken face to face, how should the collection method questions be answered for HMDA? Code 3 (NA) is only supposed to be for applications where the requirement to report the data does not apply to the covered loan. We would use code 3 on applications where it is an entity. Code 2 (not based on visual observation) would be the only choice that would make sense. What are your thoughts?

Is email receipt of the LE sufficient

01/19/2020

We mailed the borrower’s Loan Estimate and they emailed us that it was received, and they want to proceed with the loan. Can we act on this emailed notice?

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