Perfecting Security Interests in Deposit Accounts, Securities Accounts and Other Investment Property

Establishing Control Under the UCC with Special Types of Collateral

Recording of a 90-minute CLE webcast with Q&A


Conducted on Tuesday, November 28, 2017

Recorded event now available

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Program Materials

This CLE webinar will provide commercial finance and bankruptcy attorneys with an analysis of the requirements and methods for creating and perfecting security interests in bank accounts, securities accounts and other investment property to achieve the desired priority. The panel will offer best practices for drafting and negotiating control agreements and avoiding common pitfalls.

Description

UCC Article 9 provides debtors with the ability to use their bank accounts, securities accounts and other investment property as collateral to obtain credit. There are specific considerations to create and perfect a security interest in these types of collateral and for the lender’s security interest to have the desired priority.

For the security interest to be created and to attach, the security agreement should contain a sufficient description of the deposit accounts, securities accounts and other investment property collateral.

For the security interest to be perfected and to achieve the desired priority, the secured party usually will want to—and sometimes need to—obtain “control” over collateral of these types.

A frequently used method of obtaining control of collateral is for the lender, the borrower, and the depositary bank or securities intermediary to enter a control agreement covering that collateral.

Secured parties need to consider the potential pitfalls in control agreements and steps to protect their interests in the collateral in the control agreement.

Listen as our authoritative panel of commercial finance attorneys discusses the UCC Article 9 provisions unique to deposit accounts, securities accounts and other investment property as collateral, and discusses best practices for negotiating and drafting deposit and securities account control agreements and avoiding common pitfalls.

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Outline

  1. Deposit accounts, securities accounts and other investment property as collateral
    1. Creation of security interest
    2. Available perfection methods
    3. Priority and “free of claims”
  2. Perfecting security interests in deposit accounts
    1. Importance of control
    2. Key provisions of control agreement
  3. Perfecting security interests in securities accounts and other investment property
    1. Methods of perfection: Filing vs. control
    2. Importance of control
    3. Key provisions of control agreement
  4. Common drafting pitfalls

Benefits

The panel will review these and other key issues:

  • How does a secured creditor obtain control over a debtor’s securities account and deposit account—and why is control critical?
  • What circumstances make perfection by control preferable to perfection by filing for security interests in securities accounts, and when is control necessary for perfection of a security interest in a deposit account?
  • What common pitfalls should be avoided in drafting the control agreement?

Faculty

Joachim, Mark B.
Mark B. Joachim

Shareholder
Polsinelli

Mr. Joachim has more than 20 years of experience representing clients on complex financing arrangements. In the...  |  Read More

Unterberg, Craig S.
Craig S. Unterberg

Partner
Haynes & Boone

Mr. Unterberg concentrates his practice in the areas of representing borrowers and lenders in secured and...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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