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Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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I sold my company. The buyer defaulted and transferred all

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I sold my company. The buyer defaulted and transferred all of the stock back to my name. He now claims I should have followed different UCC rules. Now that the stock is in my name hasn't he waived any UCC rights?
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To clarify, the buyer voluntarily transferred the stock back to your name?
Customer: replied 4 years ago.

Yes it was voluntary and he admitts he defaulted


Thank you for your response.

Question – Now that the stock is in my name hasn't he waived any UCC rights?
Answer – Yes you are correct

Regardless of whether you properly filed your U.C.C. lien or did not file the U.C.C. lien at all, the fact that he voluntarily transferred the stock back to you makes the issue moot.

The U.C.C. filing is to allow for repossession in the event of nonpayment. Since the stock was transferred to you, it is irrelevant whether or not you properly filed the U.C.C.
Customer: replied 4 years ago.

Under section 9 of the UCC (I have been doing some research on line) is the debtor allowed to waive rights?

The UCC no longer applies because of the voluntary surrender.
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