Global Capital Markets Center
|
The Impact on Securitization of Revised UCC Article 9 Steven L. Schwarcz 74 Chicago-Kent Law Rev. 3 (Summer 1999) (Symposium on Revised UCC Article 9) |
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 sale 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 revisions of Article 9 do much to bring the commercial law setting for securitization into the 21st Century.
Email the author to request a copy of the article
Return to the Securitization and Structured Finance Index
Return to the Research
Index
