S. 9-104(j), 9-106, 9-401(1)(c) - hotel rents and related service revenues - excluded as interests in or lien of real estate or included as accounts or general intangibles collateral?

Article Abstract:

Conflicting interpretations of hotel rents need to be settled on the issue of exclusion under Section 104(j) of UCC Article Nine. The Illinois Appellate Court has decided that hotel income such as rent qualifies as interests in real estate, in Travelers Insurance Co. v. First National Bank of Blue Island, thus allowing exclusion. Two other courts have given contrary or similar opinions. Exclusion would remove asset encumbrance or leave recourse to real estate law.

Hotels and motels, Rents (Property)

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Section 2-207 - "battle of the forms" revisited - "knock out" rule reaffirmed - "Roto-Lith" overruled

Article Abstract:

The 1997 Ionics decision in the 1st Circuit illustrates the problem in determining validity of each parties' contractual forms of orders, acknowledgment, warranties, and so forth. This battle of the forms question often arises in UCC litigation. In this case, the damages limits clauses and the warranty clauses exchanged by the parties cancelled each other out under the so-called knock-out rule. The decision also overturned the 1962 Roto-Lith decision.

Laws, regulations and rules, Contracts

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"Deposit accounts" as personal property collateral under California UCC - bank's failure to comply with garnishment order - waiver of bank's security interest and set-off rights

Article Abstract:

A bankruptcy court held that a bank lost its security rights on a California account because it ignored a garnishment order and let the depositor's account activity continue. The decision involved California's version of Article Nine of the Uniform Commercial Code, which differs from the law of most other states. A newer version, adopted by 46 states, omits deposit accounts from secured interest property under Article Nine.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banks (Finance), California, Bank deposits, Personal property, Bankruptcy

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