UCC9 and Security Devices and what they mean
MR. RUBIN’S SECURITY DEVICES CLASS
CLASS HYPOTHETICAL FOR LESSONS 2 and 3
HYPOTHETICAL #1
You have been retained to represent BigCreditor Bank. In 2011, BigCreditor’s junior loan officer, Evan Elpus, made a $800,000 loan to international teen singing sensation
Bee Yonsay.
Bee signed a negotiable promissory note for the $800,000 loan; the money was to be used for Bee to create a new recording studio. In addition to the note representing the loan,
Evan prepared the following document for Bee and her manager, Aie Jent.
UNCONDITIONAL AGREEMENT
I, we, and all of us unconditionally promise that any and all obligations that
Bee Yonsay owes to BigCreditor Bank, whether incurred in the past or in the future, will be timely paid. Our promise is made unconditionally and without reservation, and each of us warrant and represent our promise and agreement.
Done and signed this 15th day of June, 2011, in Baton Rouge,
Louisiana.
s/ Bee Yonsay
Bee Yonsay s/ Aie Jent
Aie Jent
Accepted: s/ Evan Elpus
Evan Elpus
Loan Officer
BigCreditor Bank.
Hypotheticals for Lessons 2 and 3
Page 1 of 9
Question #1
The negotiable note that Bee signed was dated June 20th 2011 (five days after the
“Unconditional Agreement” was signed) and payment in full was due June 20, 2013.
In June of 2013, however, Bee couldn’t pay the note, so Evan, the Bank’s loan officer, sent Bee this letter:
June 1, 2013
Dear Bee Yonsay:
This letter confirms BigCreditor Bank’s agreement that your negotiable note, which was due in full on June 20, 2013, will now be extended. We agree that you may make monthly payments of $1000, which will not even cover all the interest that is accruing on the loan. All unpaid interest and entire principal balance will be due in full on January 10, 2014.
All of us here at the Bank wish you continued success in your singing career; you’re an outstanding teenager!
Sincerely
Evan Elpus
Evan Elpus
Loan Officer
BigCreditor Bank.
When she gets
CLASS HYPOTHETICAL FOR LESSONS 2 and 3
HYPOTHETICAL #1
You have been retained to represent BigCreditor Bank. In 2011, BigCreditor’s junior loan officer, Evan Elpus, made a $800,000 loan to international teen singing sensation
Bee Yonsay.
Bee signed a negotiable promissory note for the $800,000 loan; the money was to be used for Bee to create a new recording studio. In addition to the note representing the loan,
Evan prepared the following document for Bee and her manager, Aie Jent.
UNCONDITIONAL AGREEMENT
I, we, and all of us unconditionally promise that any and all obligations that
Bee Yonsay owes to BigCreditor Bank, whether incurred in the past or in the future, will be timely paid. Our promise is made unconditionally and without reservation, and each of us warrant and represent our promise and agreement.
Done and signed this 15th day of June, 2011, in Baton Rouge,
Louisiana.
s/ Bee Yonsay
Bee Yonsay s/ Aie Jent
Aie Jent
Accepted: s/ Evan Elpus
Evan Elpus
Loan Officer
BigCreditor Bank.
Hypotheticals for Lessons 2 and 3
Page 1 of 9
Question #1
The negotiable note that Bee signed was dated June 20th 2011 (five days after the
“Unconditional Agreement” was signed) and payment in full was due June 20, 2013.
In June of 2013, however, Bee couldn’t pay the note, so Evan, the Bank’s loan officer, sent Bee this letter:
June 1, 2013
Dear Bee Yonsay:
This letter confirms BigCreditor Bank’s agreement that your negotiable note, which was due in full on June 20, 2013, will now be extended. We agree that you may make monthly payments of $1000, which will not even cover all the interest that is accruing on the loan. All unpaid interest and entire principal balance will be due in full on January 10, 2014.
All of us here at the Bank wish you continued success in your singing career; you’re an outstanding teenager!
Sincerely
Evan Elpus
Evan Elpus
Loan Officer
BigCreditor Bank.
When she gets