Learn how to navigate the UCC Article 9 foreclosure process to effectively recover collateral, comply with legal requirements, and avoid common pitfalls that create post-sale liability.
Many parties involved in secured transactions do not fully understand their options upon default. Bankruptcy liquidation is only one method a secured creditor may rely on to recover collateral; however, it can be time-consuming and costly for all parties involved. This presentation introduces a direct and straightforward alternative for those who prefer not to proceed with bankruptcy or other judicial proceedings.
Learning Objectives
- A UCC foreclosure is a non-judicial process initiated by a secured creditor that may be particularly useful when there is no dispute regarding the obligation owed. This program will explain the methods secured creditors may use during the disposition of collateral and the requirements for each method of disposition. You will also learn the standards and factors courts often consider when determining whether the parties have complied with UCC enforcement rules. Finally, you will identify - and learn how to avoid - common challenges and pitfalls faced by other creditors following disposition. You will be able to describe the purpose and procedures of a UCC Article 9 foreclosure, including when it is appropriate and how it differs from bankruptcy proceedings.
- You will be able to identify the various methods of foreclosure, private sale, public sale, and strict foreclosure and the requirements for each under Section 9-610.
- You will be able to explain key legal obligations such as notice, commercial reasonableness, and price determination, and how courts evaluate compliance.
- You will be able to discuss common post-sale procedures and pitfalls, including successor liability and enforcement errors, and strategies to avoid costly disputes.
Agenda
Introduction to UCC Article 9 Foreclosure
- What Is It?
- When Is It Used?
- Type of Collateral
- Pros
- Limitations
- Steps Taken
Methods of Foreclosure - Section 9-610(C)
- Private Sale
- Public Sale
- Strict Foreclosure
- Requirements/Steps
- Satisfaction of Debt
Requirements
- Notice
- When Must Notice Be Given?
- To Whom Must Notice Be Given?
- What Information Must Be Included in the Notice?
- Commercially Reasonableness
- Definition - Section 9-610
- Tests Employed by Courts
- Requirements
- When Not Applicable
- Price Determination
- Public - Meaningful Opportunity
Post-Sale Procedures
- Application of Proceeds
- Liability for Deficiency
- Right to Surplus
Pitfalls to Avoid
- Successor Liability
- De Facto Merger/Consolidation
- Mere Continuation
- How to Avoid?
- Language in Purchase Agreements
Failure to Comply With Article 9 Enforcement Rules
Speakers
Kirk B. Burkley, Esq.,
Bernstein-Burkley, P.C.- Co-managing partner of Bernstein-Burkley, P.C.
- Practice emphasizes all aspects of bankruptcy and restructuring, creditors’ rights, business and corporate transactions, litigation, real estate, and oil and gas
- Conducts regular seminars, live webinars and workshops on bankruptcy, creditors’ rights, and oil and gas
- Author of several publications related to the bankruptcy field, with work appearing in ABI Journal, Equipment Leasing Newsletter, Pennsylvania Association of Credit Managers' newsletter The Creditor, and more
- President of the American Board of Certification, 2020; past president of Turnaround Management Association; member of Allegheny County Bar Association, American Bankruptcy Institute
- J.D. degree, University of Pittsburgh School of Law; B.S. degree, Ohio University
- Can be contacted at 412-456-8108 or kburkley@bernsteinlaw.com
Who Should Attend
This live webinar is designed for attorneys, presidents, vice presidents, branch managers, loan officers, loan department personnel, credit and collection managers, controllers, business executives, accountants, and real estate professionals.
