![]() ![]() from a small business you should search Florida’s UCC registry online to see if anyone has filed a UCC 1 that could encumber the property. The lender could sue the innocent buyer to recover the property. In this instance, the buyer would take may client’s property subject to the lender’s security interest whether or not the buyer had actual knowledge. The offense is punishable regardless of whether the debtor had criminal intent, and the law applies as well to the buyer. ![]() In the first place, Florida statutes make it a misdemeanor criminal office to sell personal property subject to a security interest without the secured party’s consent. He asked whether his creditors could sue the buyer to recover the goods assuming he did not discuss with the buyer the loan agreement and security agreement. He knew someone in the same business who was willing to buy his property at a reasonable price. He asked whether he could sell the business’s inventory and equipment before he shut the doors. He knew the business would have to shut down shortly. I had a small business client who stated his business was in financial difficulty. The lender typically records a UCC 1 to give public notice of its lien and security interest in the debtor’s property. Many small business loans from banks are secured by the business’s tangible personal property including office furniture, equipment, and inventory. ![]()
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