Purchase Security Interest Default Repossession
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IAC Ch 34, P.1 701—34.17(321,423) Repossession of a Vehicle. A
IAC Ch 34, p.1 701—34.17(321,423) Repossession of a vehicle. A vehicle may be taken from a purchaser by the holder of the security interest in the vehicle or someone acting on the holder’s interest, if the purchaser defaults on the terms of the purchase agreement. To be recognized as valid for use tax purposes, the repossession must be regulated under the terms of the Uniform Commercial Code and there must be a valid lien on the title of the vehicle. To be recognized as valid for use tax purposes, repossession of a vehicle can be made by dealers, by financial institutions, and by individuals. The taxable result of repossession depends on the identity of the person doing the repossessing and the manner in which the person doing the repossessing conducts the transaction. 34.17(1) Licensed vehicle dealer. If a licensed vehicle dealer repossesses a vehicle and anticipates reselling the vehicle, then the dealer can use the dealer’s resale exemption, and no use tax is due at the time of the registration of the vehicle by the dealer. 34.17(2) Financial institution or private individual. A financial institution or a private individual may be a licensed dealer entitled to receive an exemption from use tax based on the dealer’s license when registering a repossessed vehicle. Repossessions of vehicles that will be resold by a financial institution or an individual that does not have a dealer’s license can be effectuated using a foreclosure affidavit. Use tax liabilities which arise as a result of such affidavits are as follows: a. -
The Anti-Lien: Another Security Interest in Land*
The Anti-Lien: Another Security Interest in Land* Uriel Reichmant The law recognizes various security interests in land, which are de- signed to provide two distinct advantages over unsecured interests: the right to priority over general creditors in bankruptcy proceedings, and the right to satisfy the debt from a specified parcel of property. This article proposes recognition of an intermediate concept between secured and unsecured debt: an interest in land that secures to some extent the repayment of a debt, but does not possess the twin characteristics of full security interests. This interest in land, the "anti-lien,"1 is a preventive measure; the debtor's power of alienation and power to grant another security interest are suspended while the debt remains outstanding. The anti-lien creditor has no powers or rights other than this passive rem- edy; for all other purposes, he is treated as a simple debt creditor. The few cases that have dealt with contracts containing anti-lien re- strictions have limited the analysis to a narrow question: did the con- tract create an equitable lien (that possesses the characteristics of a traditional security interest) or merely a personal obligation? Framing the question in this way eliminated consideration of the anti-lien alter- native-an alternative that is potentially useful when a regular security interest is unavailable or economically impractical. This paper attempts to explain deficiencies in the application of the equitable lien analysis to the anti-lien situation and argues the case for the anti-lien concept. Just a decade ago, documents evidencing an anti-lien approach were widely used in California. -
Consumer Guide to Vehicle Repossession
REQUIREMENTS FOR DOING REINSTATING A VEHICLE BUSINESS CONTRACT AFTER REPOSSESSION Repossession agencies and their employees must be The Bureau has no jurisdiction over whether or not licensed by the Bureau of Security and Investigative the vehicle’s legal owner will reinstate your contract. Services (Bureau or BSIS) to engage in business or If you obtain a reinstatement, you will need to accept employment to locate or recover vehicles that provide the repossession agency a release from are subject to a security agreement.2 the legal owner stating that you may redeem your vehicle and proof of having paid the administrative Note: In some cases, a bank, financial lender, or filing fee to the police or sheriff’s office, where the other legal owner will send their own employees to repossession was reported.8 recover the vehicle. Individuals employed directly by a bank, lender, or the legal owner of the vehicle are Please note that in some cases you may not get your not required to be licensed as repossession agency vehicle back after it has been repossessed. employees.3 HOW REPOSSESSIONS WORK When a person has violated a condition(s) of the lease CONSUMER or loan agreement (e.g. being past due on the vehicle loan or lease payments, failure to maintain insurance, etc.), and efforts to correct the violation fail, the GUIDE TO bank, financial lender, legal owner or their agents can contract with repossession agencies to locate 1 and repossess the vehicle subject to the security VEHICLE agreement that contains the repossession clause. Many of the activities carried out before, during, and REPOSSESSION after the repossession are regulated by State and federal laws. -
Failure to Pay Rent - Landlord's Complaint for Repossession of Rented Property Real Property §8-401 1
DISTRICT COURT OF MARYLAND FOR No. of tenants 1 2 3 4 Located at CASE NUMBER TRIAL DATE & TIME Affixed on Premises Landlord Address Date City State Zip Mailed to Tenant 1 Tenant 2 Tenant 3 Tenant 4 Tenant Constable/Sheriff Address Served on Party: City State Zip Date Date FAILURE TO PAY RENT - LANDLORD'S COMPLAINT FOR REPOSSESSION OF RENTED PROPERTY REAL PROPERTY §8-401 1. The property is described as: , Maryland. Property Name Number Street Apt. City 2. Is the Landlord required by law to be licensed/registered in order to operate this premises as a rental property? Yes No. If so, is the Landlord currently licensed/registered Yes No. License/Registration number if applicable: 3. The property: is affected property under §6-801, Environment Article, its registration with the MDE is current and its registration has been renewed as required, and its MDE inspection certificate numbered , is valid for the current tenancy; or Inspection Certificate No. owner is unable to state Certificate No. because property is exempt tenant refused access or to relocate/vacate during remedial work. The property is not affected. 4. The Tenant rents from the Landlord who asks for possession of the property and a judgment for the amount determined to be due. 5. This is is not a government subsidized tenancy. Tenant is responsible to pay the following amount of rent: $ due on $ the of the week month, which has not been paid or reduced to judgment. As of today, rent is due for the weeks months of in the total amount of $ less Tenant payments of $ ( ) for utility bills, fees, and security deposits under PU §7-309 $ Net Rent Late charges accruing in or prior to the month in which the complaint was filed for the weeks months of are due in the amount of .................................................................... -
Repossession and Foreclosure of Aircraft from the Perspective of the Federal Aviation Act and the Uniform Commercial Code John I
Journal of Air Law and Commerce Volume 65 | Issue 4 Article 3 2000 Repossession and Foreclosure of Aircraft from the Perspective of the Federal Aviation Act and the Uniform Commercial Code John I. Karesh Follow this and additional works at: https://scholar.smu.edu/jalc Recommended Citation John I. Karesh, Repossession and Foreclosure of Aircraft ofr m the Perspective of the Federal Aviation Act and the Uniform Commercial Code, 65 J. Air L. & Com. 695 (2000) https://scholar.smu.edu/jalc/vol65/iss4/3 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of Air Law and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. REPOSSESSION AND FORECLOSURE OF AIRCRAFT FROM THE PERSPECTIVE OF THE FEDERAL AVIATION ACT AND THE UNIFORM COMMERCIAL CODE JOHN I. KARESH* I. INTRODUCTION T HIS ARTICLE will discuss the repossession and foreclosure of an aircraft by a secured party in the context of Article 9 of the Uniform Commercial Code ("UCC"), and the applicable provisions of the Federal Aviation Act' (the "Transportation Code"). This article will also analyze the standard Certificate of Repossession form adopted and formerly approved for use by the Federal Aviation Administration ("FAA"),2 and the latest re- vision of that form,' and some procedures commonly followed by creditors who repossess in the context of Article 9 of the UCC. II. THE TRANSPORTATION CODE AND FEDERAL PRE-EMPTION Section 44103(a) (1) of the Transportation Code specifically provides that the FAA shall register aircraft and issue a certifi- cate of registration to its owner.4 Section 44107(a) of the Trans- portation Code generally provides that the FAA shall establish a system for recording conveyances that affect the following: (1) interests in civil aircraft registered in the United States; (2) leases and instruments executed for security purposes, including * John Karesh-B.A. -
Aircraft Repossession Upon a Default - a Review of the Issues in the United Kingdom, USA, India and Nigeria
Aircraft repossession upon a default - a review of the issues in the United Kingdom, USA, India and Nigeria November 2019 TECHNICAL PAPER SERIES NO.45 Aircraft repossession upon a default - a review of the issues in the United Kingdom, USA, India and Nigeria Contents i Acknowledgement ii 1. Introduction 1 2. Aircraft repossession steps upon default 2 3. The Cape Town Convention 4 4. United Kingdom 6 5. United States of America 8 6 India 10 7 Nigeria 14 INSOL International 6-7 Queen Street, London, EC4N 1SP Tel: +44 (0) 20 7248 3333 Fax: +44 (0) 20 7248 3384 Copyright © No part of this document may be reproduced or transmitted in any form or by any means without the prior permission of INSOL International. The publishers and authors accept no responsibility for any loss occasioned to any person acting or refraining from acting as a result of any view expressed herein. Copyright © INSOL INTERNATIONAL 2019. All Rights Reserved. Registered in England and Wales, No. 0307353. INSOL, INSOL INTERNATIONAL, INSOL Globe are trademarks of INSOL INTERNATIONAL. i TECHNICAL PAPER SERIES NO.45 Acknowledgement INSOL International is very pleased to present a technical paper titled ‘Aircraft repossession upon a default - a review of the issues in the United Kingdom, USA, India and Nigeria’ by Henry Kikoyo, partner, Brown Rudnick LLP with contributions provided by Oluseye Opasanya SAN, partner and Mitchell Aghatise, associate, Olaniwun Ajayi LP in relation to Nigeria; and Ajay Kumar, partner, RNClegal / Rajinder Narain & Co in relation to India. Due to unique exposure and susceptibility to macro-economic factors, airlines often find themselves financially distressed and defaulting on their financing obligations. -
Mortgage-Backed Securities & Collateralized Mortgage Obligations
Mortgage-backed Securities & Collateralized Mortgage Obligations: Prudent CRA INVESTMENT Opportunities by Andrew Kelman,Director, National Business Development M Securities Sales and Trading Group, Freddie Mac Mortgage-backed securities (MBS) have Here is how MBSs work. Lenders because of their stronger guarantees, become a popular vehicle for finan- originate mortgages and provide better liquidity and more favorable cial institutions looking for investment groups of similar mortgage loans to capital treatment. Accordingly, this opportunities in their communities. organizations like Freddie Mac and article will focus on agency MBSs. CRA officers and bank investment of- Fannie Mae, which then securitize The agency MBS issuer or servicer ficers appreciate the return and safety them. Originators use the cash they collects monthly payments from that MBSs provide and they are widely receive to provide additional mort- homeowners and “passes through” the available compared to other qualified gages in their communities. The re- principal and interest to investors. investments. sulting MBSs carry a guarantee of Thus, these pools are known as mort- Mortgage securities play a crucial timely payment of principal and inter- gage pass-throughs or participation role in housing finance in the U.S., est to the investor and are further certificates (PCs). Most MBSs are making financing available to home backed by the mortgaged properties backed by 30-year fixed-rate mort- buyers at lower costs and ensuring that themselves. Ginnie Mae securities are gages, but they can also be backed by funds are available throughout the backed by the full faith and credit of shorter-term fixed-rate mortgages or country. The MBS market is enormous the U.S. -
Credit Applications and Beyond
Credit Enhancements: Beyond the Personal Guaranty Thomas R. Fawkes and Brian J. Jackiw Goldstein & McClintock LLLP Warning Signs of Impending Default • Deviations in the manner or timing of counterparty payment may suggest liquidity issues or a potential bankruptcy filing • Counterparty requests lengthening of payment terms or additional trade credit • Counterparty becomes less cooperative and avoids communications concerning outstanding amounts due • Public reports (such as those published by Dun & Bradstreet) suggest that the counterparty is not paying its trade debts in a manner consistent with past practices • Rumors of the counterparty’s imminent demise are being conveyed by competitors or industry sources 2 What do you do if you do not have credit enhancements in place? TAKE THE MONEY!!!! • Comply strictly with any contracts in place • Do not extend additional credit • Evaluate past history • Make every effort to maintain ordinary course of business terms 3 Credit Enhancements and Protections Credit enhancements offer greater protection in the event a counterparty experiences financial distress and/or becomes a debtor in bankruptcy, and include: • Irrevocable Letters of Credit • Pre-payment of goods and services • Guaranty Agreements and Puts • Cross/Intercompany Guarantees • Deposits • Trust Agreements • Credit Insurance • Security Interests in Collateral (including purchase-money security interests) 4 Standby Letters of Credit • A letter of credit (LOC) is, simply put, a commitment to make a payment, typically issued by a counterparty’s -
Distinguishing Between Securities Account and Deposit Accounts Under the UCC
As Appeared in the Illinois Bar Journal December, 2000, Volume 88 #12 Distinguishing Between Securities Account and Deposit Accounts Under the UCC By René Ghadimi, Katten Muchin Zavis Rosenman ©Reprinted with permission of the Illinois Bar Journal. Copyright by the Illinois State Bar Association, on the Web at <www.isba.org> Lenders frequently take security interests in the deposit accounts and securities accounts of their borrowers to secure the repayment of borrowers loan obligations. This article explores the basis for perfecting security interests in securities and deposit accounts and discusses the often important and sometimes elusive distinction between the two. The first step [in] determining how to perfect a lien is to decide whether a given account is a deposit or a securities account, as such terms are defined in the UCC in the relevant jurisdiction. Cash collateral accounts of one form or another are an important part of many finance transactions. These accounts may constitute significant assets of a borrower and can assume many forms, including operating accounts, capital subscription accounts, various types of reserve accounts and cash management accounts. These accounts may contain funds that are maintained overnight or for extended periods. More often than not, business realities dictate that the borrower be allowed to maintain some degree of control over the funds and invest them in financial assets rather than letting them languish as cash balances. The question for lenders who typically take a pledge of these accounts to secure the loan obligations of their borrower is how to perfect their security interest. These lenders must confront the issue of whether these various accounts are deposit accounts or securities accounts under the Uniform Commercial Code, or maybe a little of both. -
Second Edition SUMMER 2016
Anthony Gentile Owner of Dynamic Towing Equipment & Manufacturing Professional Repossessor Magazine salutes Dynamic Equipment for it’s continued financial support to theRABF . Full story inside. Second Edition SUMMER 2016 104744_Magazine2.indd 1 7/15/16 9:34 AM www.MyRecoverySystem.com AND THE FEES JUST KEEP RISING! Every day, like you, I read about how technology is improving how a repossession agent does their job - that's true, technology does help, but why does it cost YOU more? Insert Sarcasm Here: Come on, you understand, these things cost more money but that cost will be offset by more repossessions (Yeah Right). It's just a nickel for this, a dime for that, a $1 to this company, $2 to that company, $100 for this app, $100 to show this address and on and on and on. It's nothing, You look around the world and as technology improves cost goes down. Not in repossession – This industry has allowed companies to piggyback off of each other and every time someone jumps on someones back, it cost YOU more. With the latest, paying to show addresses on a map. Advancements in technology should allow someone to create a software platform that can give YOU all the tools needed to do your job and FOR ONLY A COUPLE OF HUNDRED DOLLARS PER MONTH. IT'S HERE!!! MY RECOVERY SYSTEM Case Management – From accepting new assignments to delivering to the auction My Mobile Agent – Clearly the best agent management and mapping app. Available for - Windows, Android & iOS LPR Exchange – It’s your data, share what you want with who you want Fleet Management – Know where all your drivers are all the time ALWAYS adding New Features / NEVER adding Transaction Fees. -
Secondary Mortgage Market
8-6 Legal Considerations - Real Estate Contracts - Financing Basic Appraisal Principles Other Sources of Funds Pension Funds and Insurance Companies Pension funds and insurance companies have recently had such growth that they have been looking for new outlets for their investments. They manage huge sums of money, and traditionally have invested in ultra-conservative instruments, such as government bonds. However, the booming economy of the 1990s, and corresponding budget surpluses for the federal government, left a shortage of treasury securities for these companies to buy. They had to find other secure investments, such as mortgages, to invest their assets. The higher yields available with Mortgage Backed Securities were also a plus. The typical mortgage- backed security will carry an interest rate of 1.00% or more above a government security. Pension funds and insurance companies will also provide direct funding for larger commercial and development loans, but will rarely loan for individual home mortgages. Pension funds are regulated by the Employee Retirement Income Security Act (1974). Secondary Mortgage Market The secondary mortgage market buys and sells mortgages created in the primary mortgage market (the link to Wall Street). A valid mortgage is always assignable by the mortgagee, allowing assignment or sale of the rights in the mortgage to another. The mortgage company can sell the loan, the servicing, or both. If just the loan is sold without the servicing, the original lender will continue to collect payments, and the borrower will never know the loan was sold. If the lender sells the servicing, the company collecting the payments will change, but the terms of the loan will stay the same. -
Perfecting a Security Interest in an LLC Membership Interest in Virginia
Perfecting a Security Interest in an LLC Membership Interest in Virginia Rebecca C. Bowen Thompson McMullan, P.C. (804) 698-6223 / [email protected] With limited liability companies being the entity of choice for many businesses in Virginia and the lending opportunities that they create, it is important to understand how to perfect a security interest in an LLC membership interest. Under Virginia’s UCC, a membership interest may be classified as either a “security” (Va. Code § 8.8A-103(c)) or a “general intangible” (Va. Code § 8.9A-102(42)). Establishing and determining the correct classification is important because different rules are invoked for the perfection and priority of a security interest in a security versus a general intangible. Va. Code § 8.8A-103(c) provides that a membership interest is not a “security” unless it is “dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by [Article 8.8A of the Virginia Code], or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.” Accordingly, a membership interest is not a “security” unless: the LLC’s articles of organization or operating agreement “opt-in” to Article 8.8A by specifying that the membership interests are securities governed by Article 8.8A; (ii) the membership interests are actually dealt in or traded on securities exchanges or securities markets; (iii) the LLC is an investment company; or, (iv) the membership interest is a financial asset held in a securities account.