Is Article 8 Finally Ready This Time? The Radical Reform of Secured Lending on Wall Street

Saturday, January 1st, 1994 at 12:00 am by Jeanne L. Shroeder
Jeanne L. Shroeder, Is Article 8 Finally Ready This Time? The Radical Reform of Secured Lending on Wall Street, 1994 Colum. Bus. L. Rev. 291

This article proceeds as follows. I will first briefly introduce the conceptual problems of Amended Article 8 as it now stands and explain how it fails to capture modern securities trading practice. I will then turn to a general introduction to the proposed reconceptualization of the law of securities held through broker-dealers. This will require a discussion of the property concepts that underlie the Proposals — especially the concept of “control.” I will then discuss in detail the specific proposed rules governing the attachment, perfection, enforcement, and priorities of security interests in investment property, including problems of coordination with the federal law administering broker-dealer insolvencies. I will then conclude with a consideration of the arguments for and against adoption of the Proposals.

Author Information

Professor of Law, Benjamin N. Cardozo School of Law, Yeshiva University