Enforcing Commercial Bailee Waivers in Asset Based Lending Facilities
Executed commercial bailee waivers subordinate statutory warehouse liens, preserve borrowing base liquidity, and guarantee ninety days of liquidation site access.
Replevin Writ
Meaning
A judicial order directs a law enforcement officer to seize specific personal property and return it to its rightful owner or a secured creditor. This replevin writ is used when a borrower refuses to hand over collateral after a default. It is a pre-judgment remedy that allows the creditor to regain possession before a full trial on the merits of the debt.
Recovery Action
Filing for the order requires the claimant to prove they have a superior right to the property. This replevin writ identifies the items with enough specificity that a sheriff can locate them on the factory floor. The speed of this action is intended to prevent the debtor from hiding, selling, or damaging the assets.
Bond Requirement
Financial security must be posted by the creditor to protect the debtor in case the seizure is later found to be wrongful. This bond usually covers twice the value of the property being seized. If the court later decides the creditor did not have the right to the assets, the bond funds are used to compensate the debtor for the loss of use.
Property Identification
Descriptions in the legal documents must be exact. Serial numbers, model names, and physical locations are all included to ensure the correct machinery is taken. A vague replevin writ might be unenforceable if the officer cannot distinguish the collateral from other similar items on the site.