Uniform Commercial Code foreclosures

The Firm has a great deal of experience in foreclosing on a variety of assets under the Uniform Commercial Code. In addition to a garden variety of foreclosure sales, such as foreclosing liens in equipment and inventory, we have handled foreclosure sales of technology companies and manufacturing companies. We have also conducted foreclosure sales of shares of stock in closely-held companies. Where appropriate, we have advised lender clients on funding the debtor (or paying former employees as independent contractors) pending the foreclosure sale to maintain some level of business operations and going-concern value. We have auctioned assets by the whole and by the parts, and closed the auction sales in whichever manner brought the highest return for the lender. We are knowledgeable about the impact of federal tax liens, and the notices required to be delivered to the IRS to prevent a federal tax lien from surviving the foreclosure sale. Although many of these sales are public sales, we have also conducted numerous private sales and strict foreclosures (transfer the collateral in full or partial satisfaction of the debt). We also have experience in getting writs of possession to obtain the assets prior to the sale, where the debtor will not tender the assets to the lender voluntarily or sign a peaceful possession letter.

Representative Experience

• Regular representation of various banks including Citibank, Atlantic Bank of New York, Bank Leumi Trust Company of New York in connection with UCC actions (forged checks, forged endorsements, secured transactions), workouts, restructures and letter of credit issues.
• Representation of banks and other entities and persons in the financial service industry in a wide variety of financial services litigation and disputes, including lender liability, UCC negotiable instrument, complex creditors’ rights, trust administration, securities fraud and bankruptcy adversary proceeding litigation.
• Representation of Wachovia in a multi-count embezzlement civil complaint which resulted in obtaining summary judgment for Wachovia. National Union Insurance v. Wachovia, et al 282 F.Supp. 2d 339; UCC Rep. Serv. 2d (Callaghan) 198 (D. Md. 2003).
• Representation of the Georgia Superior Court Clerks Cooperative Authority in connection with its outsourcing of a statewide UCC indexing system.