We’re happy to welcome again visitor creator, lawyer, Bennett L. Cohen to the FCS weblog! Learn on for the ninth installment in his weblog collection addressing the intricacies of UCC Termination Statements.
UCC Termination Statements, a Entice for the Unwary: Half Ten
As mentioned final week, extra due diligence is critical if the debtor itself filed the UCC termination. In such case, it’s recommended that the secured social gathering difficulty a letter to you confirming that the secured debt has been paid in full, and authorizing you to terminate all UCC filings filed by such secured social gathering. Furthermore, new UCC terminations are advisable because the debtor could or could not have been certified to file the termination itself below Code Part 9-513.
If there’s a couple of secured social gathering of report on a UCC submitting (whether or not named within the preliminary submitting or added by later modification or the results of an project of the UCC to a number of assignees), all secured events of report should file a certified UCC termination of such submitting. As famous above, there are additional dangers concerned when a UCC was beforehand assigned, and it isn’t 100% clear on the face of the UCC project {that a} full project was meant from the secured social gathering to the assignee.
As indicated earlier, if an present secured social gathering of report subsequently merged into one other entity, such successor entity is permitted to terminate the UCC filed by the secured social gathering of report below Code Part 9-509.
In regards to the Writer
Bennett L. Cohen is a accomplice within the legislation agency of Cohen, Salk & Huvard, P.C. in Northbrook, Illinois, a Chicago suburb. Bennett recurrently represents banks, business finance corporations, insurance coverage corporations and different institutional lenders within the structuring, documentation and shutting of economic financing transactions, together with asset-based loans, business loans, business actual property mortgage and building loans, mezzanine loans, leveraged acquisitions, gear lease loans and factoring transactions. Bennett is a member of the American Bar Affiliation and serves on the ABA Committee on Industrial Monetary Providers and the ABA Subcommittees on Secured Lending, Mortgage Documentation and the Uniform Industrial Code. Bennett could be contacted at bcohen@cshlegal.com.