Conversely, a funding statement in Holiday House, which I have here, had a narrower description of security than the security agreement. As a result, security interest was limited to the assets described in the funding report. Keep in mind, then, if there is a difference between the security agreement and the funding establishment, the narrower description of the guarantees will apply. Why the difference? Well, the reason is that when it comes to security agreements and funding declarations, they have different objectives. Funding is just a communication. Therefore, there is really no conflict between the rules of the security agreement and the declaration of funding. As you can see from the questions and answers above, UCC-1s are important documents. You ensure that your guaranteed interest is secured on a loan or lease, so that you can be at the top of the line of credit if a debtor is in financial difficulty or has to go bankrupt for the duration of your contract. UCC-1s help you reduce risk and protect assets (assets). Some other questions that sometimes arise when the description of security and security agreement differs from the collateral description in the funding list. Note that funding is generally not necessary to accurately reproduce the description of the security contained in the security agreement.
But what if they have a substantial difference? In other words, one covers more assets than the other. Well, in this case, the description of the guarantees is usually narrower. In Article 9, it is also possible to use a super-gene description of guarantees on a funding list. This is what you`ll find in section 9-504. It is said that the financing establishment sufficiently indicates security when it indicates that it covers all of the debtor`s personal assets or assets. There`s a case in point, Des Packers du Nord. It occurred here that the insured party had a general security interest in its funding statement. Subsequently, it took two additional guarantees, and an amendment was made to replenish the security, and only the two new security assets, the two additional assets, were described.
I would also like to mention the product of the guarantees. I will not spend much time on this because of our time constraints. But the security contains recipes. Thus, the interest of securities for identifiable securities products will be added and it will be automatically refined so that the security interest in these revenues is automatically enhanced over a period of time, when the security interest in the initial warranty has been perfected.