In a ruling of much consequence to secured lenders everywhere, the Delaware Supreme Court held in Motors Liquidations v. JPMorgan Chase Bank that filing an incorrect UCC-3 termination statement can be a costly mistake.
THE UCC-3 TERMINATION STATEMENT
USA, Delaware, Insolvency & Restructuring, Litigation, Fredrikson & Byron PA, Personal property, JPMorgan Chase, Uniform Commercial Code (USA), Delaware Supreme Court
The Delaware Supreme Court ruled last fall that a UCC termination statement inadvertently releasing collateral on a $1.5 billion term loan was valid. The creditor could not later claim it did not intend to include the collateral in its release of other collateral with regard to a different credit facility. Official Committee of Unsecured Creditors v. JPMorgan Chase Bank, NA (Del. 2014).
USA, Delaware, Insolvency & Restructuring, Litigation, Fredrikson & Byron PA, Collateral (finance), JPMorgan Chase, Delaware Supreme Court