Sunday, January 11, 2009
The $57 million typo - ouch!
According to Law.com, a typo in a UCC form filed in 2007 by Bank of America on behalf of itself and as agent for Citibank may leave both banks holding the proverbial $57 million bag because of a "clerical error" that may have voided their security interest in the dissolved law firm of Heller Ehrman, LLP. On October 1, 2008, shortly after Heller filled for bankruptcy, an attorney representing the banks filed a "correction statement" seeking to rectify the "mistake" in the 2007 UCC filing that allegedly vitiated their security interest in the now defunct law firm.
Tsk, tsk! Someone at Bank of America wasn't minding his p's and q's. Hat tip to AboveTheLaw.com.
I am the scholarship dude.