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What is the underlying lien that the UCC-1 references? That is, is there is a filed deed of trust, etc... that you would foreclose on?
My company loaned another company money and we UCC'd the debt. The UCC1 named pretty much every conceivable asset the company might have, including bank accounts, receivables and equipment. They are in default. I have not taken them to court, but their note has 10 day or quit verbage. I plan to send them a certified letter of our intent to take action in 10 days. Do I have to go to court and get a judgment to take their assets, or do I just go in with a police officer and do it because it's part of the loan?
Do I have to go to court and get a judgment to take their assets, or do I just go in with a police officer and do it because it's part of the loan? You absolutely have to go to court. The good thing about a UCC "lien" is that most of the time it takes precedence over bankruptcy, so should they go bankrupt, you can still get your money. You also have priority over other debtors. But you still need to prove that you are actually entitled to foreclose on the property, and to do that, you will need to sue and get a judgment, then "perfect" that judgment and get an authorization and order to seize and sell assets.
That being said, you need to contact an attorney in your area that deals with breach of contract cases. Go to www.lawyers.com or www.legalmatch.com to find an attorney in your area. You should be able to find one that will give you a free initial consultation and better advise you of your rights, any problems with your case, likelihood of success, how courts are treating cases such as yours in your area, and what you should do next.
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Ok, one more question and you may cut and run on me after I throw it out there. The two parties in this deal may be a little unusual. The Creditor is an LP that owns 100% of the stock in the C-Corp (the Debtor). Further, the Officers of the LP's General Partner (A Nevada C-Corp) are the same as the officers of the Debtor's C-Corp. All of these entities are Nevada entities. Although the Security Agreement attached to the note says that if certain terms and conditions are met, the Creditor doesn't have to take further legal action to seize Debtor's assets, I am thinking based on what you said this is going to be necessary to perfect the lien. So here's the burning question: Since there is going to be no contest in this case, can the Creditor and Debtor entities pursue binding arbitration or mediation to save costs and speed up the process?
Sorry for the delay. I've been having internet issues all day and I haven't gotten it fixed until now (I hope).
Yes, they can. They would have to first enter into an agreement to do so, and to consent to the binding arbitration, but this is certainly a possibility.
If there is something else that I can help you with, please let me know.
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