The Impact on Securitization of Revised Ucc Article 9
16 Pages Posted: 2 Mar 2006
Abstract
The recent revisions of Article 9 of the Uniform Commercial Code, or UCC, are expected to have a significant impact on securitization - a type of financing that is perhaps the most rapidly growing segment of the U.S. credit markets and increasingly a major part of foreign credit markets. In its current form, Article 9 governs the transfer of only certain types of assets that are involved in securitization transactions. Revised Article 9 attempts to broaden its coverage to virtually all securitized assets. I analyze how it does that and what it means for Article 9 to apply to these transactions, addressing issues of perfection and priority of asset transfers, commingling of proceeds, assignability of assets in the face of contractual restrictions, and the effect of negative pledge covenants. Finally, I show that the revision of Article 9 does much to bring the commercial law setting for securitization into the 21st Century.
Note: This is a desription of the article and is not the actual abstract.
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