Pink Floyd Songs and Debt Collection Law – Us and Them

Us and Them

Before any business agreement, it is crucial to invest some time and money to find out which other creditors have staked a claim to a security interest in the debtor’s personal and/or real property. It’s literally “us versus them” regarding the priority of a creditor’s lien.

Knowing what has already been promised to other creditors is essential, depending on the collateral used. Are you interested in inventories, for instance? If so, will the advanced money be used to buy the inventory, creating a purchase money security? Therefore, it is crucial to know any existing inventory liens. To maintain the purchase money priority in both the inventory and its proceeds, a creditor must notify other secured creditors before any expected purchase money security interest on inventory.

It’s also important to know where to find and file the UCC. Despite the exceptions for perfection, the filing must occur in the state where the debtor was established (if an entity) or where the debtor resides (if an individual). When a filing is made in the incorrect location, the creditor receives nothing and is classified as “unsecured.” To determine whether there are other lien holders, zoning, and use restrictions and whether the chain of title is accurate, one should conduct a title search on real estate. “An ounce of prevention is worth a pound of cure,” as the proverb goes.

We would like to acknowledge Ron Steen at Thompson Burton in Tennessee as the original author of this tongue-in-cheek look at Pink Floyd and the Debt Collection Legal Industry

Marcadis Singer, PA
5104 South Westshore Blvd.,
Tampa, Florida.
Phone: (813) 288-1881

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