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
USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Uniform Commercial Code (USA), Delaware Supreme Court, United States bankruptcy court
Recent case law reminds practitioners and lenders to pay careful attention when drafting prepayment premium provisions in debt instruments or risk having the premiums disallowed in a borrower’s bankruptcy case.
USA, Insolvency & Restructuring, Litigation, Alston & Bird LLP, Maturity (finance), United States bankruptcy court