LAW 7605 - Secured Transactions

A secured transaction is one in which a debtor borrows money from a creditor and designates property as collateral to secure repayment of the loan. A classic example is the financed purchase of an automobile. Should the debtor fail to make the required payments, the secured party may take legal action or (in some instances) repossess the property. Secured transactions fuel a substantial part of the American economy. In this course, we will examine various rules governing debtor/creditor and creditor/creditor relationships, addressing several key questions: how do financial institutions protect themselves against borrower default, what happens when the debtor files for bankruptcy protection, and who wins when similarly-situated creditors must square off against each other in the fight for the debtor’s vulnerable assets? Given that many of the rules governing secured transactions in personal property are found in Article 9 of the Uniform Commercial Code, we will frequently consult its provisions. In laying a core conceptual foundation, we will also address secured transactions in real property, including the ramifications of mortgaging property and the legal and equitable rights of mortgagors and mortgagees prior to and during the foreclosure process. In each session, we will apply the law to hypothetical problems presented, and as a result, students completing the course will have a knowledge base critical to the effective representation of average consumers, growing businesses, insolvent/bankrupt debtors, and sophisticated financial institutions. The course provides a solid foundation for courses in Bankruptcy Law. This is a bar-tested course on the UBE. As of March 2024, the UBE will be the bar exam in 43 states and all US territories (except Puerto Rico). Letter grade. 3 credits