The U.S. District Court for the Southern District of New York recently issued a Decision favoring UCC secured parties. The Decision reversed a United States Bankruptcy Court, Southern District of New York decision that held a “mistakenly” filed UCC-3 was unauthorized. (It basically released MORE collateral than what the secured party wanted released.) On the appeal, the United States Court of Appeals ruled that the UCC-3 was authorized and therefore was effective to terminate the security interest.
