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8/24/2015
A lender is not limited to just one method of perfection for fixtures. Although generally not necessary,
all three methods can be used for the same transaction. A lender will commonly rely on a record of
mortgage to perfect its security interest in both the real property and fixtures. Some lenders also like
to record a fixture filing as belt and suspenders insurance.
A fixture filing alone is often used when the security interest covers fixtures, but not the rest of the
related real property. Lenders also use fixture filings to perfect purchase-money security interests
when financing goods that will become fixtures on the debtors property.
Because of the priority limitations, lenders generally should not rely solely on a state-level UCC filing
to perfect a security interest in fixtures. Most commonly, the state-level UCC filing covers fixtures
simply as part of a blanket lien. When fixtures have significant value, the prudent lender will make a
fixture filing to preserve its priority with respect to real estate interests.
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