Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

What’s the Difference Between an “Active UCC Filing” and an “Effective UCC Filing?”

July 31, 2014 UCC, Due Diligence, Revised Article 9

The Uniform Commercial Code contains many terms and phrases that are esoteric to the commercial lending industry—they have a very specific meaning within the code. The definition can be crucial to your due diligence efforts, so it’s important to know the difference. One instance we’ve come across is the difference between an “active UCC filing” and an “effective UCC filing,” which can have an affect on your due diligence.…READ MORE

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Control Agreements Effect on Priority Position

July 25, 2014 UCC, Due Diligence, Reduce Financial Risk

This is a guest post from attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook Important Revisions To Article 9′s Rules Regarding Individual Debtors. Control Agreement for Pledged Deposit Account: Does the depository bank need to subordinate its security interest in the pledged deposit account to a lender's security interest granted in the pledged deposit account? Answer: Yes.…READ MORE

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Will a lender’s notation of its lien on a certificate of title for a vehicle always perfect the lender’s security interest?

July 17, 2014 UCC, Reduce Financial Risk, Title Related Topics

We continue our guest blog series with commercial lending attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook: Important Revisions To Article 9′s Rules Regarding Individual Debtors. Perfection in Titled Vehicles: Will a lender's notation of its lien on a certificate of title for a vehicle always perfect the lender's security interest? Answer: No. The general rule is that…READ MORE

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How to Protect Your Client List From UCC Secured Party Searches

July 10, 2014 UCC, Services / System Update, Online UCC System, Revised Article 9, Reduce Financial Risk

UCC searching and filing service providers go to great lengths to keep their customers’ data secure. Technology and in-house procedures provide safeguards to keep your data protected from outside sources. Since service providers, along with state and county filing offices, are the gatekeepers of public records containing transactional information, this is good thing. The nature of the Uniform Commercial Code, however, exposes an important…READ MORE

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If a lender discovers that its borrower/mortgagor has transferred ownership of the mortgaged property to a trust or other person or entity, does the lender need to do anything to preserve its mortgage lien?

July 03, 2014 Title Related Topics

We continue our guest blog series with commercial lending attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook: Important Revisions To Article 9′s Rules Regarding Individual Debtors. Real Estate Transfer: If a lender discovers that its borrower/mortgagor has transferred ownership of the mortgaged property to a trust or other person or entity, does the lender need to do anything…READ MORE

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