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Article 9 specifically outlines what name a secured party should both file and search in order to determine if a filing is effective. It takes the guesswork out of the equation.
Then the UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT said, not so fast. Everyone must comply with Article 9 except for an Internal Revenue Service tax lien. The case was regarding
SPEARING TOOL AND MANUFACTURING CO., INC., who filed for bankruptcy. CRESTMARK BANK knew they were in a first position and were confident of the outcome. Unbeknownst to the Bank, the IRS had
filed a tax lien under the wrong debtor name.
Even though the name was incorrect, and would not have been discovered using Article 9 standards, the IRS still won. Why and what can be done? We will review what happened, the mistake made
by Crestmark Bank and some POWERFUL TOOLS (IRS forms) you can use so YOU will not lose to the IRS.
