Exploring equitable subrogation and its independence from UCC requirements: This article addresses a bank‘s challenge claiming the UCC supplants equitable subrogation rights. Backed by case law and UCC §1-103, it confirms that subrogation arises by equity, not contract, ensuring sureties’ priority over security interests without UCC filings. Learn how federal and state courts affirm these principles and the limitations of UCC Title 9 in such contexts.
The Uniform Commercial Code (UCC) and equity law offer separate frameworks for addressing disputes and enforcing obligations. While equity law emphasizes fairness and adaptability, often intervening when rigid legal rules result in inequitable outcomes, the UCC provides structure and consistency in commercial transactions, integrating equitable principles to maintain fairness in its enforcement. This discussion delves into how the UCC incorporates equity, evaluates the advantages and limitations of each framework, and highlights key sections such as UCC §§ 1-103, 2-202, 2-203, 2-204, 2-206, 2-302, 3-303, 3-311, 3-603, 3-604, and others
Claiming your estate and becoming a secured party is essential not for owning assets but for controlling them privately. When you properly establish yourself as the executor, authorized representative, and trustee of the "U.S. citizen" ens legis, you gain priority control over the estate, placing a lien on all assets as evidenced by a "security agreement" in accordance with UCC 9-509. This process ensures you have legal authority over the assets tied to your estate. Here’s a comprehensive explanation:
ALL bank accounts have two sides to them. A Public (liabilities) side and a Private (assets) side, as substantiated by […]