LLC and LP Security Interest Resource Kit

Summary

This resource kit provides an overview of perfecting collateral in limited liability company (LLC) and limited partnership (LP) ownership interests. Borrowers typically pledge the equity they hold in subsidiaries to lenders, and the borrower's parent company may do the same with its equity in the borrower. These are special forms of collateral, as their categorization under the Uniform Commercial Code (UCC) can vary (i.e., the equity interest can be considered either a "general intangible" under Article 9 of the UCC or a "security" under Article 8 of the UCC). Counsel must make this determination to properly assess the means of the perfection and the necessary documentation. Finally, exercising remedies against these forms of collateral also present their own challenges. This resource kit includes Practical Guidance materials on each of these aspects of LLC and LP security interests, including detailed practice notes, templates, and checklists.