Baird Holm Attorneys Earn Major Victory in the Nebraska Supreme Court

Today, the Nebraska Supreme Court unanimously ruled that § 9-406(a) of the Nebraska Uniform Commercial Code (“UCC”) applies not only to outright assignments of accounts, but also to presently exercisable security interests in accounts.  In First State Bank Nebraska v. MP NexLevel, LLC, 307 Neb. 198 (2020), the Court held that there is no meaningful difference between an “assignment” and a “security interest” under the UCC. This ruling of first impression gives Nebraska lenders confidence that they can rely upon their security interests in their borrowers’ accounts and accounts receivables to secure outstanding obligations. The opinion can be accessed here.