Leveraging UCC Art. 9 and 3, State Foreclosure Laws to Protect Enforceability of Mortgages and Promissory Notes

Overcoming Challenges of Securitization and MERS in Mortgage Foreclosure Proceedings

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

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Conducted on Thursday, August 14, 2014

Recorded event now available

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Course Materials

This CLE course will provide finance counsel with an analysis of mortgage notes under UCC Articles 3 and 9 and state foreclosure laws. The panel will discuss how to reconcile the UCC and state law with respect to the ownership, transfer, and enforcement of mortgage notes and mortgages. 


When a mortgage note is a negotiable instrument, Article 3 governs obligations of parties and enforcement of those obligations. Whether the note is negotiable or non-negotiable, Article 9 governs how ownership may be transferred, the effect of transfer of the note on ownership of the underlying mortgage, and the right of the transferee.

Borrowers often challenge standing in MERS and MBS transactions by arguing noncompliance with UCC Article 3 and 9 rules governing transfer and enforcement of notes secured by a mortgage. The UCC’s Permanent Editorial Board has sought to clarify application of the rules to assignments of mortgage notes.

In applying Articles 3 and 9 to the assignment of mortgage notes, court rulings have not been consistent. Adding to the confusion is the interplay between the UCC and state foreclosure laws.

Listen as our authoritative panel analyzes mortgage notes under UCC Articles 3 and 9, as well as state foreclosure law trends. The panel will outline approaches to reconcile the UCC requirements and state laws regarding ownership, transfer, and enforcement of mortgage notes and mortgages.



  1. Comparison of UCC 9 vs. 3
  2. Interplay with state foreclosure laws
  3. Consumer arguments made in foreclosure litigation
  4. Case law developments


The panel will review these and other key questions:

  • When does Article 3 govern the mortgage note and when does Article 9 come into play?
  • What is the interplay between UCC rules on mortgage notes and state foreclosure laws?
  • How have courts treated arguments that the chain of title is broken if the promissory note and mortgage deed reside in different entities?


David Kantrowitz
David Kantrowitz

Goodwin Procter

Mr. Kantrowitz is a Member of the firm’s Business Litigation Group and has a diverse practice that focuses on...  |  Read More

Edgar Martinez
Edgar Martinez

O'Melveny & Myers

Mr. Martinez is a Member of the firm’s Financial Services Practice. He represents clients in a variety of...  |  Read More

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