Seventh Circuit Okays Incorporation By Reference For Financing Statement Collateral Descriptions

LexisNexis (December 9, 2019, 2:57 PM EST) -- Does Article 9 of the UCC require a financing statement to contain “within its four corners” a specific description of collateral, or does incorporating a description by reference to a physically unattached security agreement sufficiently “indicate” the collateral? In a recent decision from Illinois, the bankruptcy court had ruled that a financing statement fails to perfect a security interest unless it “contains” a separate and additional description of the collateral. The bankruptcy court ruled that incorporation of the security agreement by reference did not do the job....