Also known as: lists of collateral · collateral list
Written by attorneys · grounded in primary & secondary sources — see below
A list of property that a debtor believes secures an obligation, submitted in a signed record requesting the secured party to approve or correct the list and reasonably identifying the underlying transaction.
BlueWave Shipping sent Harbor Finance a signed record listing its container vessels and freight receivables as collateral for an outstanding loan and asked for approval or correction. Harbor replied with a signed letter stating only a loan balance and claiming an interest in the fleet. The response failed to address the specific list BlueWave had supplied.
Edward Lowry and two co-indemnitors executed a cognovit note and delivered a memorandum listing twelve items of collateral, including Lowry's shares in Pico, Inc. The secured party later sought to enforce the note after paying claims under the bonds. Lowry's listed shares became the focus of the dispute over the extent of the security interest.
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The secured party must sign and send the debtor an approval or correction of the list within fourteen days after receipt. A verbal confirmation or internal notation does not satisfy the requirement.
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The secured party may claim a security interest only as shown in the list included in the debtor's request against a person reasonably misled by the failure.
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Yes. The secured party may comply by sending a signed record stating that it claims a security interest in all of that type of collateral owned by the debtor.
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No. The request triggers only an informational response approving or correcting the debtor's list. It does not require drafting or sending a new security agreement.
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