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UCC-3 Termination Statements
Preparation of UCC-3 termination statements may be thought of as ministerial work best left to paralegals or administrative staff. After long days and nights of negotiating and documenting a financing transaction, lenders, lawyers and business people may be too willing to rely on the diligence of others and not closely review the UCCs themselves. They do this at their peril. In a recent case, two large law firms and a major corporation failed to scrutinize a UCC-3 termination statement and may have inadvertently allowed $1.5 billion in indebtedness to become unsecured.
In that case, In re: Motors Liquidation Company, 755 F.3d 78, 86 (2d Cir. 2014), the Delaware Supreme Court considered the payoff of a “synthetic lease” by General Motors Corporation (“General Motors” or “GM”), which required several UCC-3s to be filed to terminate liens on synthetic lease collateral. However, inadvertently included in that batch of UCC-3 termination statements was one that terminated a UCC-1 financing statement ' referenced only by its eight-digit filing number ' that was the principal UCC-1 securing a General Motors term loan that was 10 times the size of the synthetic lease and wholly unrelated to it.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.