New York

Abstract In New York, like other states in the United States of America, Article 9 of the Uniform Commercial Code is the primary source of law related to consensual security interests in personal property, including receivables. The Uniform Commercial Code provides that there are two key elements involved in taking a security interest over receivables: attachment and perfection. As an analytical matter, it is important to keep these elements separate. Attachment involves the creation of an effective lien over the debtor’s property in favour of the secured party. Perfection involves the taking of those steps that are necessary to ensure that the attached security interest has priority over subsequent judgment lien creditors. Perfection is important because, in a bankruptcy scenario, a secured party with a non-perfected security interest will be treated, through the operation of various Bankruptcy Code provisions, as if it does not have a secured claim.