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Can a medical provider BOTH own his accounts receivables AND have perfected security interest pursuant to UCC 9.309

I am a radiologist and performed MRI scans under my medical licensure before my MRI center was forced to file for bankruptcy protection as result of COVID. Under UCC 9.309, a perfected security interest attached immediately and automatically to me as the medical provider. The bankruptcy Judge claimed that I cannot both own the health care insurance receivables and have a perfected security interest. It is my understanding that this "belt AND supspenders" arrangement was designed to assure that the doctor-patient relationship was protected. Is anyone aware of any stautory or case precedent that prohibits a doctor from BOTH owning his accounts receivable and having a perfected security interest pursuant to UCC 9.309. Thanks

1 reply

Mar 30, 2021

Afternoon Douglas,

Unfortunately, Levelset only specializes in Construction Law. In this situation, I would suggest contacting a bankruptcy attorney in your area.

Best of Luck!

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