What is a bulk transfer of goods under the UCC?

The UCC defines a bulk sale as a sale not in the ordinary course of the seller's business of more than half the seller's inventory . . . if . . . the buyer has notice, or after reasonable inquiry would have notice, that the seller will not continue to operate . . . business after the sale.

US Legal Forms
Bulk Sales Transfer Affidavit

Bulk Transfer Without Consent In Broward

Category:

Affidavits - Business Sale

State:

Multi-State

County:

Broward

Control #:

US-00043DR

Format:

Instant download

Description

The Bulk Sales Affidavit is a legal document used in Broward to address bulk transfer without consent. This form is essential for business owners transferring property to certify that they hold full ownership rights and that the property is free of encumbrances. It includes critical statements regarding the absence of court judgments, liens, or bankruptcy proceedings affecting the business. The affidavit serves the purpose of reassuring the purchaser of the legitimacy of the sale and protecting against claims from creditors. Attorneys, partners, and owners can use this form to ensure compliance with legal requirements, while paralegals and legal assistants benefit from understanding its use in bulk sales. When filling out this form, include accurate descriptions of the business, property, and attached Bill of Sale as Exhibit A. Editing should focus on clarity and completeness to reflect the current state of the business, ensuring that all legal aspects are addressed accurately. This form is particularly useful in transactions to prevent disputes and ensure smooth property transfers.

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FAQ

While most states have repealed their bulk sales statutes, in some states across the U.S., such as California, Delaware, Illinois, New Jersey and Pennsylvania, the practice of bulk sales compliance remains alive and well.

If the Buyer fails to comply with these terms, the sale proceeds as usual, but they assume responsibility for liability payments equal to the difference between the creditor's owed debts and the amount the creditor may have obtained if the Buyer complied with California Bulk Sale Law.

At least twelve days before the closing date, buyers must file the Bulk Sales Notice with the associated County Recorder in which the assets are located and, if different, the Recorder with the county in which the Seller lives.

Article 9 of the UCC also includes four mutually exclusive types of collateral that consist of goods: consumer goods, equipment, farm products, and inventory. Goods are equipment if they do not fall into another category.

The UCC defines a bulk sale as “a sale not in the ordinary course of the seller's business of more than half the seller's inventory . . . if . . . the buyer has notice, or after reasonable inquiry would have notice, that the seller will not continue to operate . . . business after the sale.

Bulk transfer: This means when someone sells a lot of things all at once. It's like when you have a big box of toys and you sell them all to one person instead of selling them one by one. Another word for this is "bulk sale."

Bulk transfer may refer to: Bulk sale, an ownership transfer of inventory to another company. Bulk transport, the transportation of bulk cargo.

To qualify as a bulk deal, the transaction needs to account for at least 0.5% of the total shares of the company, irrespective of the value of the trade. Block deals, on the other hand, require a minimum of 5,00,000 shares, or ₹10 crores in value.