Navigating UCC Issues in Real Estate Finance Opinions: The ABA/ACMA/ACREL/ACCFL Opinion Report

Description

While some real estate financings involve only real property, many transactions involve U.C.C. collateral such as fixtures, as-extracted collateral, uncut timber, deposit accounts, investment property, and ordinary personal property used to run the business. Real estate counsel must have a thorough understanding of the U.C.C. when a financing transaction includes these types of collateral.

There are three steps necessary to create a security interest and be in a position so that it may be enforced against the debtor, other secured parties, purchasers, bankruptcy trustees, and other third parties: creation, attachment, and perfection. Critical to the creation and attachment of a security interest is the inclusion of a legally sufficient description of the collateral. Various methods (depending on the collateral) recognized under the U.C.C. work to achieve perfection of the interest.

The U.C.C. Opinion Report explains applicable U.C.C. provisions regarding creation, attachment, and perfection of security interests in various collateral types most often included in real estate financing and includes representative forms of U.C.C. opinions to cover multiple issues. The opinions and accompanying practice points provide a useful framework for U.C.C. practice in real estate finance transactions.

Listen as our authoritative panel provides perspectives and insights into giving and reviewing opinion letters relating to U.C.C. matters and the 2019 Opinion Report.