Effects Of Roswell V. Alternative Construction

Law360, New York (April 14, 2011, 1:45 PM EDT) -- Two cases, one recently decided and one pending, address the question of whether unauthorized Uniform Commercial Code (“UCC”) termination statements are effective.

Roswell Capital Partners LLC v. Alternative Construction Technologies, No. 08 Civ. 10647 (DLC), 2010 WL 3452378 (S.D.N.Y. Sept. 1, 2010) (the “Roswell case”) supports the notion that an unauthorized termination statement is fully effective in destroying the perfected status of a security interest.

The effect of the decision, if followed, would be to impose a burden on the secured party of record to monitor...
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