Uniform Commercial Code/Article 9
Perfecting a consignment is easy, but failing to do so is disastrous.
Ninth Circuit interprets UCC § 9-319(a) to permit avoidance of consignor’s interest in proceeds of an unperfected consignment.
The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.
Potential harm to the debtor is not a factor in deciding to avoid an unperfected lien.
Mistakenly cancelling a mortgage can result in a preference but not a fraudulent transfer if the cancellation is later rescinded.