Failure to Review UCC Filings Leads to Loss for Lender

On September 18, 2020, the Illinois Appellate Court, First Division, decided Metropolitan Capital Bank and Trust v. Feiner, 2020 IL. App (1st) 190895. It was a case in which the lender was suing the defendant for common law fraud and conspiracy to commit fraud. That the defendant committed fraud in the loan underwriting process wasn’t at issue. What was at issue was whether the lender was justified in relying solely upon the defendant’s fraudulent statements or had a duty to dig deeper. …