Political Quotes

“Yes, Madam President. The changes made by the committee will be a significant improvement to Federal bankruptcy law, and will provide creditors with sufficient time to perfect their security interest. Since the Senate is addressing the purchase money security issue, I thought it would be advisable to clarify a related issue that has caused unnecessary litigation throughout the country and in my home State of Tennessee. The issue is whether State laws that allow a longer period of time to perfect a lien by allowing the creation of the lien to ``relate back'' to an earlier date contravene the Federal Bankruptcy Act. While Federal bankruptcy courts have long recognized that State law defines and governs the manner and timing of motor vehicle lien perfection, there has still been some dispute in the lower courts regarding State ``relation back'' statutes. Under most state motor vehicle title perfection laws, if the requisite steps necessary for perfection are completed on a timely basis, the date of perfection ``relates back'' to the date the security interest was created or attached. These are commonly known as ``relation back'' laws. For example, Tennessee has a ``relation back'' State titling law that allows creditors of motor vehicles 20 days to perfect the lien to protect their security interest.”