Consignments and Reclamation Rights: Documentation, UCC Rules and Treatment in Bankruptcy
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will examine the treatment of consignments and reclamation rights under the UCC and in bankruptcy. The panel discussion will include an analysis of the UCC definition of ”consignment” and how it impacts the documentation and perfection and priority of a consignor’s interest in consigned goods. The panel will also discuss reclamation rights in goods in and out of bankruptcy.
- UCC vs. non-UCC consignments
- UCC perfection and priority
- Notification to competing inventory secured lenders
- Reclamation under the UCC—Section 2-702(2)
- Reclamation in bankruptcy
- Section 546(c)—procedures and pitfalls
- Section 503(b)(9) administrative claim for value—limitations
The panel will review these and other key issues:
- What constitutes a consignment of “goods” under the UCC, and why is it an important determination to make upfront?
- What steps should a consignor of goods take to ensure perfection and priority of its interest over a bankruptcy trustee or competing inventory secured lender?
- How does reclamation under Section 2-702(2) of the UCC differ from the reclamation under Section 546(c) the Bankruptcy Code?
- When is an administrative expense claim available under Section 503(b)(9)?
Professor Kenneth C. Kettering
Visiting Professor at Large
Kenneth C. Kettering
Mr. Kettering last taught as Lecturer in Law at Columbia University School of Law, and before that taught at Case... | Read More
Mr. Kettering last taught as Lecturer in Law at Columbia University School of Law, and before that taught at Case Western University School of Law, Brooklyn Law School, the University of Miami School of Law, Loyola University New Orleans School of Law, New York Law School, and the University of Pittsburgh School of Law. Before joining the academy he was a partner of Reed Smith Shaw & McClay (now Reed Smith LLC), where his practice centered on sophisticated transactional work, including derivatives and foreign exchange transactions, syndicated lending, highly leveraged transactions, asset-based lending, structured finance and securitization, and mergers and acquisitions.Close
Edwin E. Smith
Morgan, Lewis & Bockius
Mr. Smith concentrates his practice in commercial law, debt financings, structured financings, workouts, bankruptcies,... | Read More
Mr. Smith concentrates his practice in commercial law, debt financings, structured financings, workouts, bankruptcies, and international transactions. He is particularly knowledgeable on commercial law and insolvency matters, both domestic and cross-border. His representations have included those in major bankruptcies including Lehman and the City of Detroit. Mr. Smith often advises financial institutions on documentation and risk management issues.Close
Steven O. Weise
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those... | Read More
Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those secured by personal property, including structured financing. He is regarded as one of the foremost authorities on Article 9 of the UCC. He is a member of the Permanent Editorial Board for the UCC and a member of the American Law Institute’s UCC Article 9 Drafting Committee. Mr. Weise is also the past chair of the American Bar Association’s Business Law Section Legal Opinions Committee.Close