Secured Transactions

Course Number:
Law 275

Hours:
3

Course Type:
Core

Writing Requirement:
None

Skills Requirement?:
No

Final Exam?:
Yes

Description:

Broome section: This course covers debt transactions in which the debtor offers personal property collateral to secure the debt. The creditor's interest in the collateral is a security interest and the course examines the creation, perfection, priority, and enforcement of this security interest under Article 9 of the Uniform Commercial Code. The class emphasizes statutory construction and practical considerations in structuring the transaction.

Brown section: The course addresses the use of personal property as collateral to secure a debt (analogous to mortagages for realty). The course focuses on Article 9 of the UCC and a few provisions of the Bankruptcy Code. Typical transactions range from garage sales to auto loans and construction projects and factoring. This is a core course that provides a unique vocabulary and framework for analysis and is a great choice for any 2L or 3L, whether generalist or specialist. Much of the material is satisfyingly brightline and certain, giving students a high level of practical mastery that is valuable in practice. It emphasizes statutory construction, utilizing a problem approach more than traditional case study.

Jacoby section: This course explores the legal regulation of asset-backed loans (think of a car loan) to consumers and businesses governed by the Uniform Commercial Code, and, to a lesser extent, by real estate law and federal bankruptcy law. We will think about enforcing secured loan agreements through repossession and foreclosure and other remedies, about debtors' remedies even when they have defaulted, about how to draft secured loan agreements that can be properly enforced, the other formalities that lenders should follow to maximize their protection, and priority contests between third parties with interests in the debtor's property (secured creditors, judgment lien creditors, bankruptcy trustees, buyers of assets, etc.)

Related Courses:

Broome section:
Sales (3 hours) (in some years) deals with the sale of goods under Article 2 of the UCC and Payment Systems (3 hours) (in some years) deals with negotiable instruments (checks and promissory notes) under Articles 3 and 4. Secured Transactions is a foundation course normally taken by 3Ls. Secured Transactions may not be taken in addition to the 4-hour course, Sales and Secured Transactions, which is occasionally offered.
Bankruptcy and Secured Transactions cover some common topics, but a student may enroll in both courses. Bankruptcy is not a prerequisite or co-requisite for Secured Transactions. Bankruptcy and Secured Transactions cover some common topics, but a students may enroll in both courses. Bankruptcy is not a prerequisite or co-requisite for Secured Transactions.

Brown section:
There is little significant redundancy in the related courses of Bankruptcy, Sales, and Payment Systems, which may be taken in any order or combination.

Jacoby section:
Due to my course materials that treat commercial law as an integrated system, secured transactions does overlap with bankruptcy. However, it is fine to take both courses, and to take them in any order or concurrently. Although the school labels secured transactions "core" and bankruptcy "non-core," bankruptcy may be a more useful selection for some students who plan to take just one. Please feel free to talk to me if you'd like to compare these options in your circumstances.

Prerequisites:

None.

Instructor(s):
L. Broome, C. Brown, M. Jacoby

Semester(s):
Fall, Spring

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