Ucc Filings

Ucc Filings

The Wilkinson court, however, was not persuaded by these arguments and held that the failure to file a continuation statement during a bankruptcy case is essentially irrelevant because the key date in determining parties’ respective security rights is the petition date.  The court agreed with the  that have held that a properly perfected security interest does not lapse on the expiration of the original financing statement if the expiration occurs during the pendency of a bankruptcy case.  Accordingly, the court ruled in the lender’s favor, finding that it held a first priority perfected security interest in the proceeds of the cattle.  The court rejected the FSA’s argument that New York law requires secured parties to file continuation statements during a bankruptcy to prevent a perfected security interest from becoming unperfected.  The FSA’s reading of the applicable statute, the court noted, was flawed in that it ignored a key sentence in the Comment to section 9–515(c) of the NYUCC.  The Comment specifically recognizes that bankruptcy law may “freeze” the parties’ interests at the time of a bankruptcy filing, and any postpetition lapse of a security interest is of no effect to a lender in a bankruptcy:

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Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings

Ucc Filings