'Authority' To Terminate Financing Statements Under UCC

On Jan. 21, in Official Committee of Unsecured Creditors of Motors Liquidation v. JPMorgan Chase Bank (In re Motors Liquidation), No. 13-2187, (2d Cir. Jan. 21, 2015), the U.S. Court of Appeals for the Second Circuit addressed whether a UCC-3 termination statement, which was improperly filed as part of the repayment of an unrelated loan, may be considered effective to terminate the security interest in question, even where none of the parties intended that result. After receiving guidance from the Delaware Supreme Court, to which a portion of the legal issues implicated in this case had been certified for opinion, the appellate court held that even though none of the parties intended for the security interest in question to be terminated, the filing of the termination statement was nevertheless effective.