Commercial Tort Claim | Practical Law

Commercial Tort Claim | Practical Law

Commercial Tort Claim

Commercial Tort Claim

Practical Law Glossary Item 8-382-3350 (Approx. 2 pages)

Glossary

Commercial Tort Claim

Defined in UCC § 9-102 (a)(13) as a claim arising in tort with respect to which:
  • The claimant is an organization; or
  • The claimant is an individual and the claim:
    • arose in the course of the claimant’s business or profession; and
    • does not include damages arising out of personal injury to or the death of an individual.
The security agreement must contain a description of the collateral that reasonably identifies the collateral (UCC §§ 9-108(a) and 9-203(b)(3)(A)). To satisfy this requirement, the security agreement should list all of the borrower's assets to be included in the collateral by using their respective collateral type definitions under the UCC. This method of description "by type" is not sufficient if the lender wants to take a security interest over a commercial tort claim as its description requires more specific details.