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Message: <blockquote data-quote="Staffan" data-source="post: 9702801" data-attributes="member: 907">Just wondering, is this a one-and-done expense that would be part of establishing an ongoing business relationship, or would you need to file a new one for each shipment you send to the distributor? And is there a particular reason why it wouldn't be covered by the consignment agreement the publishers presumably signed already?Also, looking at the Investopedia link posted above, I don't see how the UCC-1 is appropriate in this case? I mean, I'm not a lawyer or anything, but the link talks about it being used to secure assets of the debtor for loans the creditor makes, with the examples being a company taking out a loan to buy construction equipment, and the lender filing a UCC-1 on that equipment in order to have dibs on it in case of bankruptcy. It seems to me that this would be important if Diamond had operated a sales-based distribution model, where they buy goods from publishers with some kind of credit terms ("I buy 500 copies of book X and I will pay you so-and-so much money in 90 days"), but my understanding of the consignment model is that it's more "I'll store these books in my warehouse so retailers can buy them via me, and when they do I'll send you X% of what they pay."But then again, I guess that's what the court case is all about.</blockquote>