Indiana UCC Security Interests In Stock Certificates

Question Presented. Recently, a client asked (for a friend) whether certain shares of stock in a closely held corporation may be at risk to collection by a creditor. The shareholder apparently had granted a so-called blanket security interest in the shareholder’s assets to secure a personal loan. Whether the creditor filed a UCC Financing Statement (aka UCC-1 Form) with the Secretary of State was unknown. On the other hand, the shareholder (the debtor) still …