Daniel E. Cohen Authors Article in New York Law Journal, “Perfecting Security Interests in NY Cannabis Crops”
Daniel E. Cohen, associate in the firm’s Litigation and Appellate Advocacy and Corporate & Business Law practices, recently authored an article in New York Law Journal titled, “Perfecting Security Interests in NY Cannabis Crops.” The article discusses the legal complexities of perfecting security interests in cannabis-related collateral under New York law, emphasizing the importance of clear, specific security agreements and timely UCC filings. Cohen highlights how New York’s cannabis regulations, particularly around licensing, ownership changes, and liquidation, create unique challenges for lenders seeking to enforce or collect on secured interests in the cannabis industry.
“While it appears that lenders can obtain and perfect security interests in cannabis crops and products, it remains to be seen if New York would permit a secured lender to foreclose on and seize cannabis crops or products, or whether a secured lender would be permitted to force the sale of cannabis or cannabis products,” writes Cohen.
“It is important to confer with an experienced cannabis lawyer to properly perfect your security interest and to determine if your security interest will remain perfected after the crop is harvested, processed, and manufactured,” Cohen concludes.
To read the full article in New York Law Journal, click here.
