Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Single Extra Space Creates Seriously Misleading UCC Debtor Naming Error

September 15, 2017 UCC, Online UCC System, Due Diligence, Revised Article 9, Reduce Financial Risk, Tips Something

A recent court ruling in Wisconsin once again has affirmed the supreme importance secured parties must place on their data entry procedures when naming debtors on financing statements to perfect their security interests. A recap of the case can be found here. Once again, a typo in the debtor name created a UCC filing that was judged to be seriously misleading, and therefore left the secured party’s security interest with the debtor…READ MORE

*Disclaimer

Frustrated By Missing Documents At Your Closings?

September 08, 2017 UCC, Corporate, Due Diligence Something

Familiar with that feeling? Of course we’re all looking for ways to improve efficiency and, on this topic, there are some steps you can take that may help save time and streamline processes so you’re ready when it’s time and you’re not frustrated by missing documents at your closings. Don’t wait until the last minute. This seemingly simple tactic is vital to assuring you have the documents you need when you need them. If you…READ MORE

*Disclaimer

Is Big Tech, Not Fintech, Causing The Greatest Disruption To Banking?

September 01, 2017 Due Diligence, Reduce Financial Risk Something

This was explored in a published report last month by the World Economic Forum. The World Economic Forum, an independent international organization and Swiss non-profit foundation that “engages the foremost political, business and other leaders of society to shape global, regional and industry agendas,” recently published their report Beyond Fintech:  A Pragmatic Assessment Of Disruptive Potential In Financial Services (download…READ MORE

*Disclaimer

Can A Secured Party Be Liable For Failure To File Timely Terminations?

August 17, 2017 UCC, Due Diligence Something

According to Section 9-625 of the Uniform Commercial Code, yes. But first, let’s take a step back. In Article 9-513, the section of the Uniform Commercial Code that regards Termination Statements, the below is found under subsection 9-513(b) to address how long a secured party of record has to file a termination statement of a financing statement covering consumer goods if all obligations have been fulfilled by the debtor: 9-513(b)…READ MORE

*Disclaimer

Can A UCC Filing Be Terminated By The Debtor?

August 10, 2017 UCC, Due Diligence, Tips Something

In a word, yes, as long as there is no existing obligation to the lender and one follows a specific process. The process for debtors to terminate UCC filings on themselves is provided for in the Uniform Commercial Code and can be found here in Section 9-513 of the Uniform Commercial Code. That process includes the below steps: the Debtor must send an authenticated demand to the secured party the demand must be sent to the name…READ MORE

*Disclaimer

State-Level Only Lien Monitoring Programs Only Tell Part of the Story

July 13, 2017 UCC, Due Diligence, Reduce Financial Risk, Lien Monitoring Something

Once a creditor has filed a UCC Financing Statement and perfected their security interest, maintaining that priority position throughout the life of the loan becomes paramount. Many choose to employ lien monitoring programs which run interval searches on debtor names to check for any new filing activity, and then provide timely updates that alert creditors to potential threats that may jeopardize their ability to collect. Monitoring provides…READ MORE

*Disclaimer

Tips To Determine Which Party Names To Search When Lien Searching

July 07, 2017 UCC, Due Diligence, Reduce Financial Risk, Tips Something

Searching the correct party and correct legal name is imperative when coordinating due diligence search efforts. It is important to search all names under which liens could be filed. This may seem simple and obvious, but keep in mind that liens, particularly involuntary liens like federal tax liens and judgment liens, could be filed under business names, individual names, aliases, nicknames, or even fictitious business names. So, how…READ MORE

*Disclaimer

Why Use Delaware Preclearance Corporate Filing Service?

June 29, 2017 Corporate, Due Diligence Something

The State of Delaware offers Preclearance Review of Corporate Documents to assist filers through the corporate filing process and reduce the number of filings that do not meet required criteria. Various preclearance corporate filing services are offered and their official review procedures are a convenient way to avoid potential processing errors. This service assures that you have accurately drafted your corporate document before formally…READ MORE

*Disclaimer

Judgment Lien Attached To Personal Property Can Prime A Perfected Security Interest

June 22, 2017 UCC, Due Diligence, Lien Monitoring Something

Of course you’re aware that a federal tax lien can prime your perfected security interest 45 days after filing, knocking your UCC from first priority position if you do not act to protect your perfected position. It’s Factoring/ABL 101. But what about a judgment lien attached to personal property? What impact can it have on your perfected security interest? Turns out it can prime your first position UCC just like a federal tax…READ MORE

*Disclaimer

Real Property Title Searches Defined

June 15, 2017 Due Diligence, Title Related Topics Something

What is an Owner and Encumbrance Search? What is the difference between an Owner and Encumbrance Search and a Full Title Search? How about a Real Property Asset Search or an Easement/Boundary Dispute Search, what are they? If you’ve ever wondered about any of these questions, read on for Real Property Title Searches Defined. Owner and Encumbrance Search – Title reports which support and limit reported research to current ownership…READ MORE

*Disclaimer