How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Loren Your Own Question
Loren, Attorney
Category: Business Law
Satisfied Customers: 34501
Experience:  30 years experience representing clients .
Type Your Business Law Question Here...
Loren is online now
A new question is answered every 9 seconds

If i purchase a business (BUSINESS ASSET AND LEASE SALE)but

Customer Question

If i purchase a business (BUSINESS ASSET AND LEASE SALE)but not the corp, and the previous corp has UCC filings for the assets. If I purchase the business can they take the assets away afterwards? even though it's under a new corp
Submitted: 1 year ago.
Category: Business Law
Expert:  Loren replied 1 year ago.
Good afternoon. I am Loren, a licensed attorney, and I look forward to answering your question.
Customer: replied 1 year ago.
Great Alex here
Expert:  Loren replied 1 year ago.
Are you asking if an asset pledged as collateral and covered by a UCC filing retains its encumbrance if sold to another party without a release from the lender?
Customer: replied 1 year ago.
Well I guess that's what it might be. Again, The current business owners is selling his restaurant business but I found out he has two ucc filings for the equipment in his restaurant. I don't want to acquire his corp. a new corp will be opened, I just want the lease location and the business assets.
Expert:  Loren replied 1 year ago.
Thank you for the additional information.Any assets you purchase will remain subject to their pledge as collateral or security unless you get a release of those assets from the lender. So, yes, they could be legally repossessed from you if the borrower defaults.
Expert:  Loren replied 1 year ago.
Are you still online with me?
Expert:  Loren replied 1 year ago.
If you have no further questions, and have not yet done so, please remember to leave a favorable rating (Excellent or Good) so that I am credited by JustAnswer for assisting you. A bonus is not required, but is always appreciated.