John J. Hall and Larry E. Parres at Lewis Rice, LLC highlight the importance of having a correct and inclusive language identifying collateral in your UCC Financing Statement in light of a ruling in First Midwest Bank v. Jeana K. Reinbold, Chapter 7 Trustee (In re 180 Equipment, LLC), No. 17-81749, Adv. No. 18-8003 (Bankr. C.D. Ill., Aug. 20, 2018).

The UCC-1 financing statement, despite having just a few boxes to complete and check, is essential to a secured financing transaction. Most lenders…

Source: Bank loses its $7.6 million lien due to ineffective financing statement – Lexology