Financing Inventory and Proceeds under the Uniform Commercial Code

The adoption of the Uniform Commercial Code provides an excellent opportunity to reexamine the function and use of secured transactions. This paper is concerned, basically, only with financing inventory and the proceeds which arise on the sale of inventory. Some of the rules discussed are applicable only in this context, and some of the problems could not arise in any other field of secured transactions. I. Introduction II. Scope of Article 9 III. The Security Interest … A. Attachment and Perfection … B. Purchase Money Financing … C. Priority … D. The Security Agreement IV. Financing Inventory V. Financing Proceeds of Inventory Conclusio