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UCC Expert’s Corner: Court Finds Correction Statement Cannot Revive Mistakenly Terminated UCC-1

By Paul Hodnefield, Associate General Counsel for CSC

It can happen to even the most diligent secured party.  An employee of the secured party terminates a UCC-1 financing statement by mistake.  In this situation, many secured parties will do everything possible to try and preserve perfection and the original priority date.  Unfortunately, such efforts are often for naught, as was demonstrated in the recent case In re: Hickory Printing Group, Inc., 2012 Bankr. LEXIS 3354 (Bankr. W.D. N.C. July 23, 2012).

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