Consignors v. consignee's creditors: consignment transactions under the UCC
Article Abstract:
Creditors may extend credit to consignees based on the value of the material held on consignment. Then, both these creditors and consignors can file claims against the goods on consignment. In order to avoid claims of the consignee's creditors, consignors should comply with the filing requirements of Uniform Commercial Code (UCC) 9 on secured transactions, especially UCC 9-408 on financing statements for consigned goods. UCC 9-114 gives the notice requirements a consignor must follow.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1993
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Revisiting Neth's 'The first to file priority in Article 9: can you sell your place in line?' and Shanker's response
Article Abstract:
Commentators, including Professors Spencer Neth and Morris Shanker, disagree on whether a creditor's priority position in collateral can be improved by the assignment of a financing statement. Neth argued in favor of such assignments, while Shanker argued against them. Analysis of the scheme of notice and priority underlying UCC Article 9 supported Neth's position. Collectivization and prohibition of fraudulent transfers under bankruptcy law do not undermine this view of Article 9.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1998
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