| | | 8. Effect Outside of Bankruptcy. The principal effects of | | this section will take place outside of bankruptcy. Compared to | | the relatively few debtors that enter bankruptcy, there are many | | more that do not. By making available previously unavailable | | property as collateral, this section should enable debtors to | | obtain additional credit. For purposes of determining whether to | | extend credit, under some circumstances a secured party may | | ascribe value to the collateral to which its security interest | | has attached, even if this section precludes the secured party | | from enforcing the security interest without the agreement of the | | account debtor or person obligated on the promissory note. This | | may be the case where the secured party sees a likelihood of | | obtaining that agreement in the future. This may also be the | | case where the secured party anticipates that the collateral will | | give rise to a type of proceeds as to which this section would | | not apply. |
|
| | | Example 5: Under the facts of Example 4, the debtor does not | | enter bankruptcy. Perhaps in exchange for a fee, the | | municipality agrees that the debtor may transfer the franchise to | | a buyer. As consideration for the transfer, the debtor receives | | from the buyer its check for part of the purchase price and its | | promissory note for the balance. The security interest attaches | | to the check and promissory note as proceeds. See Section 9- | | 315(a)(2) [Maine cite section 9-1315, subsection (1), paragraph | | (b)]. This section does not apply to the security interest in | | the check, which is not a promissory note, health-care-insurance | | receivable, or general intangible. Nor does it apply to the | | security interest in the promissory note, inasmuch as it was not | | sold to the secured party. |
|
| | | 9. Contrary Federal Law. This section does not override | | federal law to the contrary. However, it does reflect an | | important policy judgment that should provide a template for | | future federal law reforms. |
|
| | | §9-1409.__Restrictions on assignment of letter-of-credit rights |
|
| | | (1)__A term in a letter of credit or a rule of law, statute, | | regulation, custom or practice applicable to the letter of credit | | that prohibits, restricts or requires the consent of an | | applicant, issuer or nominated person to a beneficiary's | | assignment of or creation of a security interest in a letter-of- | | credit right is ineffective to the extent that the term or rule | | of law, statute, regulation, custom or practice: |
|
| | | (a)__Would impair the creation, attachment or perfection of | | a security interest in the letter-of-credit right; or |
|
|
