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J.P. Morgan Argues That Mistake in UCC Filing Did Not Terminate Its Interest in $1.5 Billion Loan to GM

Posted by Arlin Crisco on Oct 9, 2014 2:48:22 PM

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Topics: Bankruptcy, UCC

Does Mistaken UCC Filing Terminate $1.5B Security Interest in GM Bankruptcy? CVN to Cover Delaware Supreme Court Arguments

Posted by Arlin Crisco on Oct 7, 2014 1:29:57 PM

CVN will broadcast live from the Delaware Supreme Court Wednesday as it hears arguments striking to the heart of what’s needed to terminate a security interest under that state’s uniform commercial code. In Re Motors Liquidation Co., et al.

The case’s central question stems from two secured transactions, a synthetic lease and a $1.5 billion term loan, taken out by General Motors, with J.P. Morgan as the secured party of record. Both transactions were secured by UCC-1 financing statements. However, when the parties filed UCC-3 forms to repay the synthetic lease, one of those forms mistakenly listed the term loan.

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Topics: Bankruptcy, UCC