Supergeneric Collateral Description In Financing Statement Cures Error In More Precise Description Of Collateral
LexisNexis (January 26, 2017, 11:27 AM EST) -- In a notable New York bankruptcy decision, the Second Circuit has affirmed the bankruptcy court and the federal district court in ruling that an "all assets" collateral description in a financing statement cured an error that the secured lender made elsewhere in the description. As a result, the lender's blanket security interest in the debtor's assets could not be set aside as a voidable preference. The decision seems right on target.
The New York bankruptcy court decision. In In re Sterling United, Inc., 519 B.R. 586,...