Missouri Court Rules That Lottery Winnings Are Assignable Under Revised Article 9

LexisNexis ( April 18, 2019, 9:04 AM EDT) -- If a bank makes a loan to a borrower who has won the lottery, does the bank’s security interest in the stream of payments attach in light of a special state statute that prohibits the assignment of lottery winnings? A significant decision from Missouri okays the security interest, based on UCC 9-406 and its free-transferability rule. That’s good news for the Missouri secured lender, but in a time of big-buck lotteries there are many other issues that lurk beneath the surface....