Composite Document Rule Security Agreement

For example, for a capital company, a creditor could participate in a sufficient number of shares that constitute the ownership of the company to give the creditor control of the company. The same should apply to a limited liability company (SARL). However, with respect to a single limited partnership, it would appear that a creditor could not obtain control without the ouster of the company`s partner, which seems to require a compromise agreement, and it is not clear how that would be done. This case offers a good lesson in object in the importance of paying attention to details. In the rush to complete a transaction, it can be easy to overlook the final references between documents. It is relatively easy to remember to fill the date in the first line of a document (although it is not unheard of to see a document that dates back to the month [-] year), but it may be more difficult to collect data buried in recitals or definitions. If all documents have the same date, the simplest approach may be to call everything called the ”right date” in the text of a document, but this may not always be applicable – as was the case here. As we have seen in Chapter 4 (section 9), the transfer of real estate interests is generally not within the scope of section 9. However, as we saw in Chapter 4 and, as was the case later, as was the case under article 9, the new section 9 concerns the security interests of certain real estate guarantees, including crops, wood, that must be cut and devices to be cut. The former section 9-203(1) (a) also required that the security agreement describe the security. Previously, Section 9-110 provided that a description was sufficient (whether specific or not) if it reasonably identified what was being described. It is clear from the official opinion of the former section 9-110 that nothing is more necessary than a serial number, but the courts and commentators have questioned when a description would be appropriate.

The equivalent of the old section 9-110 is the new section 9-108. Our task is to determine when a description is appropriate in the new section 9-108. ”Communication,” as defined in the new section 9-102(a) (18), essentially means transmitting a written or other minutes, transmitting a minutes by all means agreed by the persons who send and receive the minutes, or, in the case of the transmission of a data set, to or by a filing office, to transmit a minutes by all means prescribed by the deposit office rule. Section 9-203 (1) (a) provided that a non-collateral security would only be enforceable if the debtor had signed a guarantee agreement that contained a description of the security.

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