(23) Utility transmission. The word “transmitting utility” refers to an entity (including one defined in section 824(f) of this chapter) that owns, operates, or controls facilities used for the transmission of electric energy in interstate commerce or for the wholesale sale of electric energy.
What is a debtor transmitting utility, and how does it work?
A “transmitting utility” is defined in Section 9-102(a)(81) of Article 9 as “a person primarily engaged in the business of:
(D) the transmission of electricity, steam, gas, or water, or the production and transmission of electricity, steam, gas, or water.”
What is the definition of a UCC-registered organization?
A creditor’s “For the purposes of the UCC, “location” is determined according to the standards set forth in UCC 9-307.
The usual norm is that a debtor that is a “organization” is located at its place of business (if it has only one) or at its “principal executive office” if it has more than one place of business.
The only exception to the usual rule is if the group is a non-profit “accredited organization.”
“An organization organized only under the law of a single State… and for which the State… must preserve a public record indicating the organization to have been organized,” according to UCC 9-102(a)(70). (Italics added) A debtor that is a “registered organization” is “located” in the jurisdiction under the laws of which it is organized, according to UCC 9-307(e).
Because none of these entities can exist without submitting some document or record with the applicable state, the most typical examples of registered organizations are a corporation and a limited partnership.
A general partnership, on the other hand, is not a registered entity because it can exist without having to file any documents or records.
Does Installing Solar Panels Put a Lien on Your Property Title?
A UCC-1 statement is a legal notification that certain creditors file to make their debts known to the public.
assert their right to collect assets from anyone who breaches a leasing agreement.
They received funding for their solar project. In other terms, it enables
In the event of a default, the lender has the power to seize the solar panels.
This isn’t a mortgage on your house. Unfamiliarity with solar financing by the buyer’s mortgage lender
When completing a home inspection, a UCC-1 filing could be mistaken for a lien on your property.
It appears to be a title search, but it isn’t. Liens are placed on homes by mortgage lenders.
Liens are placed on automobiles by auto lenders, solar lenders, and banks.
Solar project UCC-1 statements do not put liens on anything, but
the photovoltaic panels
A UCC-1 is a document filed by a solar lender or bank that outlines their legal obligations.
If you don’t keep up with your payments, we have the authority to repossess all of your solar equipment.
keep up with your solar lease and, in some situations, solar loan payments
This ensures that the lender’s asset, your solar panels at the time, is protected.
Until the balance is paid in full, the item is safeguarded. They make no legal claims or assertions.
You do not own any other parts of your house. The UCC-1 (Uniform Commercial Code) filing
appears on your property title to provide anyone running a title search notice.
Check to see whether you have solar panels on your property.
You do not need a loan if you decide to buy your solar panels outright.
Pay attention to the UCC-1 statement. This is due to the fact that you own the property.
UCC-1 statements are only filed when you lease or borrow money.
with certain banks on your solar system
In Idaho, how can I place a lien on a property?
- Prepare the mechanics lien form in Idaho. It’s critical to double-check that your Idaho mechanics lien contains all of the required information and complies with the formal signing requirements.
Is it required to file fixtures?
In addition to the typical UCC-1 information, a fixture filing must specify that it includes fixtures, be recorded in the real property records, and include a sufficient description of the real property as required in the jurisdiction at issue (i.e., lot and block: There is no such thing as a metes and bounds description.
What is the procedure for terminating a UCC fixture?
A UCC-3 termination statement (also known as a “Termination”) is a necessary document that ends a security interest created by a UCC-1 filing. Form UCC-3 must be completed and filed with the Secretary of State’s office in the appropriate state to terminate personal property.
What is the Uniform Commercial Code (UCC) for personal property?
Consumer items, equipment, inventories, general intangibles, farm products, and fixtures are all divided into separate classes by the UCC.
In the case of tangible personal property, the goods are categorised according to the debtor’s intended purpose.
A television set in the hands of a manufacturer or merchant, for example, would be considered inventory.
It would, however, be a consumer good if it were in the hands of someone who meant to use it at home.
Consumer products are those that are used or purchased primarily for personal, family, or domestic purposes.
The television set in the family is an example.
If goods are utilized or purchased primarily for use in a business, they are defined as equipment.
Computers at an office, for example, would be considered equipment.
If the debtor holds goods largely for the purpose of selling or leasing them to others, they are categorised as inventory.
A television set purchased by someone who makes a living selling televisions and appliances is one example. In addition, inventory would include raw commodities required in production, such as steel used to make automobiles. Inventory would include materials used in a business, such as typing paper.
A promissory note, for example, would be a general intangible that you held as collateral for money you lent to someone else.
Crops, livestock, and materials utilized in farming operations are considered farm products.
Afixture is personal property that has become sufficiently connected or adapted to real estate that it has lost its personal property status and is now considered part of the real estate (e.g., a central air conditioning unit within a commercial building).
To secure future loans, a debtor may give a security interest.
This entails granting a security interest in property that a debtor may later obtain.
When a debtor receives property or receives future credit, a security interest is created. Because a dealer’s inventory changes frequently, any bank or finance business will clearly state that the security interest will bind only after the property has been acquired. In other words, the security agreement will stipulate that the security interest will also include things purchased after the first loan. This is referred to as a floating lien.
Unless the agreement clearly states otherwise, a secured transaction always covers proceeds from the collateral.
Cash, cheques, and accounts receivable from the sale of collateral are among the proceeds.
Insurance proceeds would also be included if the collateral was damaged, such as in a fire.
The finance business with the security interest would have rights to the insurance proceeds in this circumstance.
Is an automobile considered a consumer good by the UCC?
Customers and dealers regularly use banks and other lenders to finance the purchase of a titled automobile. Lenders are aware that in order to complete a lien on a titled automobile, the lien must be noted on the certificate of title’s face. As a condition of perfection, all states currently have statutes requiring lien notation on a certificate of title. As a result, a secured creditor must have its lien stated on a certificate of title in order to prevail over titled vehicle purchasers and creditors, including, of course, the debtor’s trustee in bankruptcy if the debtor files for bankruptcy. In some circumstances, filing a Uniform Commercial Code (UCC) financing statement to perfect the lien is unnecessary and futile. Possession of a certificate of title without the lender’s lien notation is likewise insufficient to perfect the lien. The automatic perfection rule of UCC 9-309(1) does not apply if an automobile is involved and qualifies as consumer goods and the transaction qualifies as a PMSI; the lien must still be noted on the title as a condition of perfection.
The certificate of title statute establishes whether a specific piece of collateral qualifies as a “motor vehicle.” The appropriate certificate of title statute must be examined by the lender. A boat, tractor, or manufactured home, for example, may be protected by one state’s certificate of title statute but not another. If a lender is unsure whether to note a lien on a certificate of title or file a financing statement in a particular circumstance, the lender should use the “belt and suspenders” method and have the lien noted on the title and a financing statement filed.
UCC 9-311(d), which states that “during any period in which collateral subject to is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collater,” is an interesting exception to the general rule that perfection of a security interest in titled vehicles is accomplished by notation of a lien on the face of the title.” To put it another way, filing a financing statement stating the collateral perfects a security interest in a car dealer’s inventory. Even if the dealer’s primary business is leasing motor cars, Illinois adopted a non-uniform version of UCC 9-311(d) under which a UCC financing statement perfects a security interest in the dealer’s complete inventory of motor vehicles (although notation of a lien on a certificate of title does not). To bypass the certificate notation requirement, Illinois does not need the vehicle dealer to be both a seller and a lessor; instead, the Illinois dealer can only be a lessor. However, title notation is necessary to perfect under the Official Text version of UCC 9-311(d) if a dealer’s primary business is leasing motor vehicles (and isn’t engaged in the business of selling motor vehicles).
Please contact our banking attorneys if you have any queries or would like more information about security interests in titled automobiles.
This email from Chuhak & Tecson, P.C. is only designed to offer updates on legal developments and information of general interest. It is not intended to be construed as legal advice and should not be relied upon as such.