Banking duo could lose $51m in Heller dispute
A "clerical error" could cost Bank of America and Citibank $51m (£35m) if Heller Ehrman has its way in bankruptcy court. Bank of America, acting for itself and as an agent of Citibank, terminated both institutions' security interests in Heller on 3 August, 2007, according to public records from the California Secretary of State. The banks admit they made a mistake and want to be considered secured creditors, but courts have not looked kindly on similar errors in the past. A secured creditor must "perfect" its security interests with uniform commercial code filings and file updates every five years. The bank last submitted such a continuation in 2005, so another filing was not needed until 2010. On 1 October 2008, a week after Heller said it would dissolve, the bank filed a correction statement saying the 2007 filing was a "clerical error." On Monday, the bank declined to discuss how or why the error occurred, or who made it - the 2007 filing required no signature.
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