InIn re Jarvis, Case No. 19-10085; the U.S. Bankruptcy Court for the Western District of North Carolina determined that the grant of a security interest to a corporate
Parent of Secured Creditor Does Not Automatically Gain Secured Status
The ruling in In re Jarvis that the grant of a security interest to a corporate lender will not necessarily "spread" that security interest to the lender's affiliates underscores the need for precision and care in the drafting of loan documents, particularly with respect to the granting language contained in security agreements.

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