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UCC Foreclosures: Overcoming Obstacles to the Sale and Evaluating Receivership and Bankruptcy Alternatives

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, May 1, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, April 4, 2025

or call 1-800-926-7926

This CLE course will provide attorneys dealing with defaulted loans secured by personal property with a review of when a foreclosure under Article 9 of the Uniform Commercial Code will maximize value for the secured creditor. The panel will discuss the UCC Article 9 foreclosure process and outline best practices to address obstacles in UCC Article 9 foreclosures. The panel will also review alternatives to UCC Article 9 foreclosures as a method of transferring distressed assets to the secured creditor. Alternatives include a receivership in aid of foreclosure and an assignment for the benefit of creditors.

Description

Secured creditors face challenges protecting their interests if a loan defaults. Practitioners and their clients must evaluate foreclosures, loan workouts, and other pre-bankruptcy solutions to determine whether they are preferable to a bankruptcy to protect the lender's interests.

While the secured creditor may obtain a recovery if its debtor becomes subject to a bankruptcy case, a foreclosure under UCC Article 9 may often produce a better recovery. When appropriate, foreclosure under UCC Article 9 is quicker, less expensive, and more predictable than a Bankruptcy Code Section 363 sale. Other alternatives include a receivership in aid of foreclosure or an assignment for the benefit of creditors.

The UCC Article 9 foreclosure process contains pitfalls and obstacles for creditors, but with careful planning, counsel can overcome these issues and minimize the risks. Counsel can also consider other alternatives to achieve for the secured creditor the same or possibly an even better result.

Listen as our authoritative panel of secured transaction specialists offers its perspective on foreclosure under UCC Article 9, including how to avoid unexpected difficulties that arise with such sales. The panel will also compare UCC Article 9 sales to other alternatives, including receiverships in aid of foreclosure, assignments for the benefit of creditors, and bankruptcies.

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Outline

  1. Comparing UCC Article 9 foreclosure to other options
    1. Loan workouts, receiverships in aid of foreclosure, and assignments for the benefit of creditors
    2. Sale in bankruptcy
  2. Conducting a UCC Article 9 sale
    1. Evaluating default
    2. Adequate lien search
    3. Strict foreclosure
    4. Public vs. private sale
  3. Obstacles to a UCC Article 9 sale
    1. Required notifications to the debtor and others
    2. Commercial reasonableness
    3. Successor liability
    4. Clear title

Benefits

The panel will review these and other relevant issues:

  • What key factors determine whether a UCC Article 9 foreclosure is a better choice than loan workouts and other pre-bankruptcy and bankruptcy alternatives?
  • How can counsel decide which type of UCC Article 9 foreclosure sale will maximize value for the secured creditor?
  • How can counsel guide clients to avoid the pitfalls presented by UCC Article 9 foreclosure sales including liability exposure for the secured creditor?

Faculty

Smith, Edwin
Edwin E. Smith

Partner
Morgan, Lewis & Bockius

Mr. Smith concentrates his practice in commercial law, debt financings, structured financings, workouts, bankruptcies,...  |  Read More

Weise, Steven
Steven O. Weise

Partner
Proskauer Rose

Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those...  |  Read More

Attend on May 1

Early Discount (through 04/04/25)

Cannot Attend May 1?

Early Discount (through 04/04/25)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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