Latest Court Decision Highlights the Value of UCC Lien Monitoring Service
UCC
The US Court of Appeals for the Second Circuit issued a decision last week that may affect how secured parties authorize third parties to terminate financing statements after a mistakenly authorized UCC termination statement cost the secured party $1.5 billion.
This decision underscores the value of UCC lien monitoring services: where secured parties can monitor their own UCC’s for unauthorized or accidental terminations. Also, secured parties should always ensure that UCC-3 Termination Amendments are included in their search results, and then contact the secured party(ies) of record to confirm the termination’s authenticity.