Legal Question in Banking Law in Minnesota

UCC Filing - Bank Violation?

We had a loan agreement with one of our affiliates and also filed a UCC-1 in Minnesota (we're in PA). The bank that he had his original loan through knew that the UCC existed as our lawyer had notified them. The loan was later sold to another bank, who we believe was also aware of the UCC, unless it was never transferred along with the loan. The affiliate decided to close his business and still owed us nearly $4000. The coach that he had bought from us was sold to another person in Maryland, we found that out when the MD Dept. of Vehicles called asking where the VIN# was. We never signed any release of the UCC to this second bank. Are they in violation and what recourse do we have? After some research, I found that the UCC is still listed as ''active'' and that this affiliate never officially closed his business and that is still in ''active'' status. He supposedly ended his business in July of 2006.


Asked on 2/04/08, 1:44 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: UCC Filing - Bank Violation?

If the Security Interest was perfected by filing, it doesn't matter if the transferee bank "knew" about it: THe security interest was on file. Call or email for representation information.

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Answered on 2/05/08, 6:48 am


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