Lenders beware—Delaware Supreme Court states a UCC-3 filing is effective regardless of intent

On October 17, 2014, the Delaware Supreme Court held that under the Delaware Uniform Commercial Code, the subjective intent of a secured party is irrelevant in determining the effectiveness of a UCC-3 termination statement if the secured party authorized its filing.[1]  

Background

Filed under:
USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Uniform Commercial Code (USA), Delaware Supreme Court, United States bankruptcy court
Authors:
Kate K. Moseley , Stacie L. Cargill
Location:
USA
Firm:
Alston & Bird LLP