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Category Archives: Article 9

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It’s Not Purdy, But It’s Not A Per Se Security Agreement

Posted in Article 9, Bankruptcy Trends, Collateral
In Sunshine Heifers, LLC v. Citizens First Bank (In re Purdy), 763 F.3d 513 (6th Cir. 2014), a divided Sixth Circuit reversed the bankruptcy court’s finding that cattle leases were disguised security interests. Over the course of three years, Debtor Lee Purdy entered into several leases with Sunshine Heifers for a total of 435 dairy… Continue Reading

SCOKY Reverses ‘Secret Lien’ Holding!

Posted in Article 9, Kentucky Law
Worried about secret liens trumping your perfection? Imagine funding a loan under the assumption that you had a first-priority security interest in a debtor’s assets to only have the government assert a secret lien over your collateral. The Kentucky Supreme Court, like courts in other states, recently recognized that the UCC Article 9 governmental entity… Continue Reading