Originally aired January 25, 2011. Recent court decisions have found that even unauthorized termination statements can effectively extinguish a security interest. These decisions should be of great concern to secured lenders, because the implication is that anyone can effectively terminate a security interest, leaving the lender unperfected. This presentation explains how UCC Article 9 addresses the effectiveness of both unauthorized termination statements and those filed by mistake. It includes a review of the applicable case law and recommendations for best practices to minimize the risk.
What Attendees Will Learn:
· How UCC Article 9 addresses the effectiveness of termination statements filed by mistake or without authorization.
· Why conflicting case law creates risk for commercial lenders.
· Best practice recommendations for reducing the risk caused by the filing of a mistaken or unauthorized termination statement
Presented by:
Paul Hodnefield, Associate General Counsel, Corporation Service Company