Secure and Perfect: Article 9 Security Solutions

Security Interest Services from Drafting to Litigation

Understanding and perfecting security interests is crucial for protecting a secured creditor’s financial interests. A security interest is a legal claim on collateral, such as equipment, vehicles, or other assets, used to secure a loan against an event of default. Properly documenting and handling these interests ensures that secured lenders or lessors have enforceable rights to the collateral if the borrower defaults, minimizing financial risks.

Importance of Correct Documentation

Ensuring proper documentation of security interests is vital. It controls whether the secured party’s claim to the collateral is legally enforceable, impacting potential disputes and financial losses in case of borrower default. Meticulous drafting and review of security agreements are essential to maintaining legal and financial security.

Perfection, Priority, and Litigation of Security Interests

Perfection means making the security interest legally enforceable against third parties, including other creditors and bankruptcy trustees. Priority determines the order in which creditors are paid from the collateral's proceeds. Proper perfection ensures the secured creditor’s claim takes proper priority, which can directly bear upon the likelihood of recovery. Incorrect perfection can result in subordinated claims and significant financial losses. If disputes arise, the secured creditor may need to consider among its available options pursuing an action to recover the collateral or its alternate value, particularly if other remedies short of a suit are unavailing.

Our Services in Virginia & West Virginia

Drafting and Review of Security Agreements

  • Custom-tailored security agreements to meet your specific business needs.

  • Detailed review of existing agreements to ensure compliance with relevant laws and effective protection of your interests.

  • Integration of security provisions into larger contracts to safeguard your assets.

Perfection and Litigation of Security Interests

  • Filing financing statements under the Uniform Commercial Code (UCC) to perfect security interests in personal property.

  • Recording title liens to secure interests in vehicles, equipment, and other titled assets.

  • Providing continuous compliance and monitoring to maintain the perfection of security interests.

  • Handling detinue actions and other litigation to recover collateral.

Why Choose J&C Law PLLC?

With extensive experience in commercial law, J&C Law PLLC is well-equipped to handle a wide range of security interests needs in Virginia and West Virginia. Whether you need new agreements, reviews of existing ones, help perfecting your interests, or litigation support, contact us today to schedule a consultation and learn how we can help secure your business lending interests. Call us at 540-200-8830 or visit our contact page to get started.

Disclaimer

The information provided on this page is for informational purposes only and does not constitute legal advice. It is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Always consult a licensed attorney in the appropriate jurisdiction before taking any course of action. J&C Law PLLC practices law exclusively in Virginia and West Virginia. The results of any legal matter may vary based on specific facts and circumstances.