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

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

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Thursday, March 9, 2017

Recorded event now available

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This CLE course will prepare counsel who advise lenders holding equity interests as collateral in commercial loans to properly perfect the security interests and to evaluate and pursue enforcement remedies in the event a borrower defaults.


Equity interests—including stock, partnership interests and LLC interests—are a common form 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, as well as UCC provisions specific to investment property.

In addition, enforcing security interests in equity interests can be difficult, particularly where pre-closing diligence and the terms of the transaction documents did 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 involved in creating and perfecting the security interests and 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 interests and LLC interests?
  • What remedies are available to lenders under the UCC upon default on a loan secured by equity interests?


James S. Cochran
James S. Cochran

O'Connor Cochran

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

Prendergast, James
James D. Prendergast

SVP, Legal Counsel-UCC Division
First American Title Insurance Company

Mr. Prendergast is General Counsel of the Uniform Commercial Code Division of First American Title Insurance...  |  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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