BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Monday, April 21, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

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.

Faculty

Steven O. Weise
Partner
Proskauer Rose LLP

Mr. Weise practices in all areas of commercial law and has extensive experience in financing, especially in those secured by personal property, including structured financing. He is regarded as one of the foremost authorities on Article 9 of the UCC. He is a member of the Permanent Editorial Board for the UCC and a member of the American Law Institute’s UCC Article 9 Drafting Committee. Mr. Weise is also the past chair of the American Bar Association’s Business Law Section Legal Opinions Committee.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
James S. Cochran
Partner
O'Connor Cochran, LLP

Mr. Cochran has extensive experience advising clients in workouts and restructurings involving complex collateral packages and multiple jurisdictions. He represents lenders in mezzanine loan transactions and other sophisticated commercial real estate financings, and has acted for lenders and other stakeholders in various bankruptcy matters, including DIP financings, section 363(f) sales and claims transfers.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

Equity interests--including corporate stock, partnership interests, 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, 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 for the secured loan, 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 also provide strategies for pursuing strict foreclosure, public or private foreclosure sales, or other possible remedies.

Outline

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

Benefits

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 corporate stock, partnership interests, and LLC interests?
  • What remedies are available to lenders under the UCC upon default on a loan secured by equity interests?