BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    Encore with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will analyze provisions in the Uniform Commercial Code (UCC) and international treaties and conventions applicable to cross-border financing transactions and discuss some of the enforcement and conflict-of-laws challenges lenders and finance counsel should understand when structuring a secured transaction involving a foreign debtor or foreign collateral.

Description

Cross-border lending activity is on the rise, increasing the number of loans made to foreign borrowers or U.S. borrowers with foreign guarantors and often secured by foreign collateral. A secured lender in the United States entering into a transaction with one or more foreign debtors must comply with the provisions of the UCC and possibly international instruments to perfect its security interests in the assets of foreign debtors.

UCC Section 9-307 sets out the rules for determining the "location" of U.S. and foreign debtors based on entity type, the jurisdiction of formation, and place of business. U.S. secured creditors typically file UCC financing statements in the formation state of domestic debtors. Still, Section 9-307(c) provides an exception to the general rule for certain foreign debtors. A foreign debtor whose place of business or chief executive office is located in a jurisdiction without a UCC-style public recordation system is deemed "located" in Washington, D.C.

In addition to the UCC analysis regarding rules for perfecting security interests in foreign debtors' assets, secured lenders in cross-border transactions should also consider potential enforcement risks and conflict-of-laws issues. A U.S. secured lender cannot assume that a foreign court would recognize the attachment, perfection, or priority of a security interest created under the UCC. Under applicable conflict-of-laws principles for most tangible collateral, the "location of the debtor" rule only governs perfection and not the effect of perfection or non-perfection or the priority of security interests.

Listen as our authoritative panel discusses the nuances of UCC perfection in cross-border transactions. The panel will also discuss the application of the UCC in foreign jurisdictions, including conflict-of-laws and enforcement issues to consider.

Outline

  1. Creating and perfecting a security interest under the UCC and international instruments: applicability across borders generally
  2. UCC Section 9-307(b) and (e): general rules for determining the "location" of the debtor
  3. UCC Section 9-307(c): foreign debtors
  4. Application of UCC location rules in hypotheticals
  5. Enforcement risks and conflict-of-laws issues in cross-border transactions

Benefits

The panel will review these and other essential questions:

  • How is the "location" of a U.S. borrower generally determined for filing purposes under the UCC?
  • How do the location and perfection, as well as priority rules, vary for foreign borrowers?
  • Can UCC security interests be recognized or enforced in foreign jurisdictions? How should conflict-of-laws issues be addressed?

An encore presentation featuring Live Q&A.