Goldin Vault

[Exhibitman]

Originally Posted by Peter_Spaeth

Why is simply shipping your cards to the vault a consignment that implicates UCC filing requirements? At least if you haven't instructed Goldin to sell them? And even if Goldin was so instructed, the UCC says it still isn't a consignment because Goldin is an auctioneer and is known to be selling the goods of others.

"UCC Section 9-
102(a)(20) defines a consignment as a
transaction in which a person delivers
goods to a merchant for purposes of sale,
and (a) the merchant deals in goods of that
kind under a name other than the name of
the person making delivery, is not an auctioneer
and is not generally known by its
creditors to be substantially engaged in
selling the goods of others"

In any case, while it is not my area, it seems to me at least some transactions in which the cards are shipped to Goldin would be more like a bailment in which there is no need to file a UCC-1.

"A bailment is a delivery of goods by the
owner, the bailor, to another party, the
bailee, for some express purpose. After fulfilling
this purpose, the bailee is obligated
to return the goods to the bailor or dispose
of the goods according to the bailor’s
instructions. As such, a bailment is an
entrustment under UCC Article 2-403(3).
The bailor has a right to the goods with
priority over the bailee in possession of the
goods and creditors of the bailee with a
security interest or lien in such goods. A
bailment is not a sale or consignment, and
is therefore not subject to the Article 9
UCC filling requirements and other rules."

I could be completely wrong but I'm not seeing the need to file a UCC-1 to keep those cards from Goldin's creditors?

Yes, you are completely wrong. One of the hard lessons from the Mastro-Legendary fiasco was that when an AH goes into bankruptcy any assets on its premises are deemed part of the bankruptcy estate unless there is a perfected security interest in the items, aka a UCC-1, filed in the state where the items are located. You as the consignor become another unsecured creditor with a claim against the AH for the value of your stuff, aka the lowest form of life in the bankruptcy food chain. If you file the UCC-1, which is cheap and easy to do online, then the world is on notice that those items are yours, not the holder's and if there is a seizure or bankruptcy, you won't have to fight a nasty case to retrieve them from the seizing authority or stand in line with the other unsecured scumbags.