What Is UCC Article 9?
The Uniform Commercial Code (UCC) is a set of laws governing commercial transactions in the United States. Article 9 of the UCC specifically governs secured transactions — including the filing of liens against business assets, accounts receivable, and future revenue streams.
When you sign an MCA agreement, the lender almost always files a UCC-1 financing statement — a public lien — against your business. This lien gives them a legal claim to your future receivables, which is what allows them to withdraw from your bank account via ACH. Understanding and challenging these UCC filings is a cornerstone of MCA legal strategy under Article 9.
How Article 9 Is Used in MCA Cases
Challenging UCC Filings
Attorneys analyze whether the MCA company's UCC-1 financing statement was properly filed and whether it accurately represents the transaction. Improper filings can be contested.
Disputing Secured Status
Some MCA attorneys argue that certain MCAs don't qualify as true secured transactions under Article 9, potentially removing the lender's priority claim to your receivables.
Lien Priority Issues
When multiple MCA lenders have filed UCC-1 statements, Article 9 governs which lender has priority. This can be used to create negotiating leverage with junior lien holders.
Fraudulent Transfer Claims
Article 9 can also be used to challenge agreements that were signed under duress or misrepresentation, potentially voiding the original MCA contract.
Why MCA Companies Fear Article 9 Arguments
Many MCA agreements — especially older ones or those from smaller lenders — contain provisions that don't fully comply with UCC Article 9 requirements. When an attorney raises these issues, MCA companies often prefer to negotiate a settlement rather than face a legal challenge that could expose flaws in their entire loan portfolio.
This is why having an attorney who understands Article 9 MCA law is so valuable. The mere threat of a legitimate legal challenge can shift negotiating power dramatically in your favor.
The MCA Legal Restructure Process Under Article 9
- 1
UCC Search & Analysis
Your attorney searches public UCC filings to identify all liens against your business and analyzes their validity under Article 9.
- 2
Agreement Review
All MCA contracts are reviewed for compliance with applicable laws, disclosure requirements, and potential defenses.
- 3
Legal Challenge or Negotiation
Your attorney either raises formal legal challenges to the MCA agreements or uses the threat of challenge as leverage in settlement negotiations.
- 4
Resolution & Lien Release
Once the matter is resolved — through settlement, restructure, or legal dismissal — all UCC liens are formally released.
Is Article 9 MCA Strategy Right for You?
Article 9 legal strategies are most effective when:
- You have multiple MCA lenders with competing UCC liens
- Your MCA agreements contain unusual or potentially unenforceable clauses
- Your MCA lender is aggressively pursuing collection or legal action
- You are facing a confession of judgment or court action
- You believe your MCA agreement contained misrepresentations or predatory terms