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Equity Interests as Collateral: Creating and Enforcing Security Interests in Equity of Corporations, Partnerships, and LLCs

Planning and Documentation Issues, Avoiding Potential Pitfalls in Perfecting Security Interests

Recording of a 90-minute premium CLE video webinar with 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.

Conducted on Wednesday, February 28, 2024

Recorded event now available

or call 1-800-926-7926

This CLE course will guide commercial finance counsel on how to document a security interest in corporate stock, partnership interests, and LLC interests, how to properly perfect such security interests, and how to evaluate and pursue enforcement remedies in the event a borrower defaults.


Equity interests--including stock, partnership, and LLC interests--are common forms of collateral in commercial loan transactions. Using equity interests as collateral presents challenges due to unique planning and documentation issues, including consideration of securities laws and entity statutes and UCC provisions specific to investment property.

In addition, enforcing security interests in equity interests can be difficult, mainly where pre-closing diligence and the terms of the transaction documents do not accommodate these unique issues.

Listen as our panel of finance practitioners provides best practices for advising lenders holding equity interests as collateral in commercial loans. The panelists will offer their perspectives and experiences on the potential pitfalls in creating and perfecting security interests. They will provide strategies for pursuing strict foreclosure, public or private foreclosure sales, or other possible remedies.



  1. Common types of equity interests
    1. Stock
    2. Partnership and LLC interests
  2. Perfecting security interests in equity interests
  3. Lender remedies upon default
    1. Strict foreclosure
    2. UCC Section 9-610 sale
    3. Other options


The panel will review these and other key issues:

  • What challenges may arise when borrowers seek to use equity interests as collateral for commercial loans?
  • What steps should lenders' counsel take to avoid common pitfalls in creating and perfecting security interests in stock, partnership, and LLC interests?
  • What remedies are available to lenders under the UCC upon default on a loan secured by equity interests?


Cochran, James S.
James S. Cochran

O'Connor Cochran

Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral...  |  Read More

Weise, Steven
Steven O. Weise

Proskauer Rose

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

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