Article
Loan Proceeds and Article 9 Proceeds
Uniform Commercial Code Law Journal
(2018)
Abstract
This article states a basic truth about secured lending: The advance against collateral is itself not collateral. This holding describes the Sixth Circuit holding in White Family Companies v. Slone (In re Dayton Title Agency, Inc.), 724 F.3d 675 (6th Cir. 2013). Paradoxically, this same advance is proceeds to a junior creditor. This principle describes the Fifth Circuit holding in Garner v. Knoll (In re Tusa-Expo Holdings, Inc.), 811 F.3d 786 (2016), a case, which, though correct in its result, was decided on grounds which are disastrous for Article 9 jurisprudence. The text of this article (which we cannot post on SSRN) is available at 48 U.C.C.L.J. 155 (2018).
Keywords
- Secured transactions,
- bankruptcy,
- fraudulent transfers,
- proceeds,
- deposit accounts,
- banks
Disciplines
Publication Date
August, 2018
Citation Information
Jeanne L. Schroeder and David G. Carlson. "Loan Proceeds and Article 9 Proceeds" Uniform Commercial Code Law Journal Vol. 48 Iss. 2 (2018) p. 155 - 202 Available at: http://works.bepress.com/david_carlson/72/