WebCredenza 2024 LLC/Partnerships interests: Collateral, pledges, and security interests

LLC members, partners and S Corp shareholders frequently pledge their ownership stakes as collateral to fund their businesses or for personal purposes. Taking and perfecting a security interest in an ownership stake involves a complex set of choices and processes under UCC Article 9 and Article 8, federal securities law and organizational law, each implying risk and limitations on the secured party.  This program will provide you with a practical guide to taking and perfecting a security interest in a partnership, LLC or S Corp ownership stake, the practical remedies and choices available to secured parties on foreclosure, how to circumvent certain restrictions, and the impact of non-UCC law on taking a security interest.

• How to take a security interest in partnership, LLC or S Corp ownership stake.
• Relationship of Article 9 and Article 8, defining security interests in securities and investment properties.
• Methods and mistakes in perfecting the security interest.
• Restrictions on assignment and methods to circumvent.
• Rights of secured parties, including the right buy, and foreclose strategies and traps.
• Securities law and non-UCC legal issues.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.