More Clarification, Less Litigation: Why Requisite Authorization is Necessary to Terminate Liens and Should be Codified into UCC § 9-513

This comment discusses a recent split of authority in court rulings regarding the filing of UCC-1 financing statements and UCC-3 termination statements. The comment recommends three changes to resolve the legal ambiguity: § 9-513 should explicitly state that requisite authorization must accompany a UCC-3 to terminate liens on collateral; the commentary following the statute should provide principles that demonstrate proper authorization is present; and the authors should provide a definition of “requisite authorization” in § 9-102.