Secured Lending to Series of LLCs: Beware What You Do Not (And Cannot) Know
The UCC Law Journal, published by Thomson Reuters/ West, is a premier journal dedicated to the Uniform Commercial Code. Norman M. Powell, a partner in Young Conaway's Business Planning and Transactions Section, has published in the UCC Law Journal since 2002.
His most recent article, “Secured Lending to Series of LLCs: Beware What You Do Not (And Cannot) Know” defines series LLCs, and discusses the significant differences among states offering these series. Currently there are thirteen states, including Delaware, that offer series LLCs. Mr. Powell aims to determine whether a given state will honor another state’s series or their internal liability shields. He also interacts with the concept that as the states involved with series LLCs continue to grow, so do the challenges with respect to series as debtors, and lending between these series. With each series having its own unique governance, purposes, and differences among statutes, this article and its investigation into these concepts is timely.