By Michael Karpen, W. Peter Beardsley and Daniel Alfino ( October 2, 2018, 4:19 PM EDT) -- Article 9 of the Uniform Commercial Code allows a fair amount of flexibility in the descriptions of collateral contained in UCC-1 financing statements that would be sufficient in order to perfect a security interest over such collateral created under the related security agreement.[1] A recent bankruptcy case from the district court of Puerto Rico, however, clearly demonstrates the limits of this flexibility while providing lenders' counsel with clear and unambiguous instructions on how to avoid the mistakes made by counsel for the "secured creditors" in that case, which caused its client's security interest to be unperfected. The decision is a reminder to secured creditors and their counsel to take care in preparing UCC financing statements, and that references to extrinsic documents for collateral descriptions may insufficiently describe collateral, even if the referenced document is publicly available.[2]...