BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Bankruptcy

Date & Time
  • event Date

    Thursday, May 1, 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.

$297.00

This CLE course will provide attorneys dealing with defaulted loans secured by personal property with a review of when a foreclosure under Article 9 of the Uniform Commercial Code will maximize value for the secured creditor. The panel will discuss the UCC Article 9 foreclosure process and outline best practices to address obstacles in UCC Article 9 foreclosures. The panel will also review alternatives to UCC Article 9 foreclosures as a method of transferring distressed assets to the secured creditor. Alternatives include a receivership in aid of foreclosure and an assignment for the benefit of creditors.

Faculty

Weise Steven
Shareholder
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.

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Smith Edwin
Shareholder
Morgan, Lewis & Bockius LLP

Mr. Smith concentrates his practice in commercial law, debt financings, structured financings, workouts, bankruptcies, and international transactions. He is particularly knowledgeable on commercial law and insolvency matters, both domestic and cross-border. His representations have included those in major bankruptcies including Lehman and the City of Detroit. Mr. Smith often advises financial institutions on documentation and risk management issues.

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Description

Secured creditors face challenges protecting their interests if a loan defaults. Practitioners and their clients must evaluate foreclosures, loan workouts, and other pre-bankruptcy solutions to determine whether they are preferable to a bankruptcy to protect the lender's interests.

While the secured creditor may obtain a recovery if its debtor becomes subject to a bankruptcy case, a foreclosure under UCC Article 9 may often produce a better recovery. When appropriate, foreclosure under UCC Article 9 is quicker, less expensive, and more predictable than a Bankruptcy Code Section 363 sale. Other alternatives include a receivership in aid of foreclosure or an assignment for the benefit of creditors.

The UCC Article 9 foreclosure process contains pitfalls and obstacles for creditors, but with careful planning, counsel can overcome these issues and minimize the risks. Counsel can also consider other alternatives to achieve for the secured creditor the same or possibly an even better result.

Listen as our authoritative panel of secured transaction specialists offers its perspective on foreclosure under UCC Article 9, including how to avoid unexpected difficulties that arise with such sales. The panel will also compare UCC Article 9 sales to other alternatives, including receiverships in aid of foreclosure, assignments for the benefit of creditors, and bankruptcies.

Outline

  1. Comparing UCC Article 9 foreclosure to other options
    • Loan workouts, receiverships in aid of foreclosure, and assignments for the benefit of creditors
    • Sale in bankruptcy
  2. Conducting a UCC Article 9 sale
    • Evaluating default
    • Adequate lien search
    • Strict foreclosure
    • Public vs. private sale
  3. Obstacles to a UCC Article 9 sale
    • Required notifications to the debtor and others
    • Commercial reasonableness
    • Successor liability
    • Clear title

Benefits

The panel will review these and other relevant issues:

  • What key factors determine whether a UCC Article 9 foreclosure is a better choice than loan workouts and other pre-bankruptcy and bankruptcy alternatives?
  • How can counsel decide which type of UCC Article 9 foreclosure sale will maximize value for the secured creditor?
  • How can counsel guide clients to avoid the pitfalls presented by UCC Article 9 foreclosure sales including liability exposure for the secured creditor?