SECURED LENDERS AND SECURED VENDORS BEWARE
A NEW SUPREME COURT RULING HOLDS THAT IN FLORIDA, THE DEBTOR’S NAME ON A FINANCING STATEMENT MUST BE EXACTLY CORRECT OR THE SECURITY INTEREST MAY BE DECLARED INVALID
Since the mid-1960s, lenders, and vendors in Florida have been able to perfect security interests in personal property collateral in order to help insure repayment of debt. Under the Uniform Commercial Code (UCC), which is contained in Chapters 671 through 679 of the Florida Statutes, three actions need to occur in order for a security interest to be perfected – (1) an agreement in writing creating the security interest (the security agreement), (2) consideration passing between the parties, and (3) in most situations, the filing of a financing statement (UCC-1 form) with the Florida Secured Transactions Registry. The security interest is perfected when the last of the three items occur.
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