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

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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

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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

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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

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Secured Party Searches and Secured Party Representatives—Cause And Effect

March 16, 2017 UCC, Reduce Financial Risk Something

In our last two blog posts, we discussed what a secured party search is and how it is utilized to expose a secured party’s customer list, and also what a secured party can do to protect that customer list. Lenders rely on security interests to manage their risk and perfect their security interests by filing UCCs, but this process puts their client list in the public record; every debtor on a UCC is that secured party’s customer! With…READ MORE

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Listen Up UCC Filers-Protect Your Customer List From Competitors

March 03, 2017 UCC, Reduce Financial Risk Something

Does it seem sometimes seem like your competitors have a copy of your customer list? Well, they just might. “No way!” you say. “How did that happen?” It’s easier than you might think. Every time a secured party perfects a security interest by filing a financing statement, one result of that filing is to reveal the secured party’s debtor, its customer, in the public record. And, just like one can search a Secretary of…READ MORE

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Tips To Maintain Your Perfected Security Interest

February 24, 2017 Reduce Financial Risk, Tips, Lien Monitoring Something

Considering all the effort and resources you put into qualifying your debtors and perfecting your security interests, it's good to know there are some excellent tools you can utilize to help maintain that priority and make your efforts pay off. Why go to all the trouble to investigate a potential new debtor’s credit worthiness, and decide to perfect your security interest by filing a Financing Statement in the correct jurisdiction, if…READ MORE

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API For UCC — Enhance Compliance And Streamline Workflows

February 10, 2017 UCC, Due Diligence, Reduce Financial Risk Something

Are you a secured party? Want to improve and streamline your UCC perfection process? Now you can. Enhance your compliance practices by eliminating the need to re-enter UCC information, and streamline your workflow by minimizing keystrokes, all at the same time. How? With Direct B2B Interfaces for UCC transactions…API for UCC. This technology allows you to connect your business line software directly to reliable, fast, and accurate…READ MORE

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Missing Liens In Your Search Results? The Cure May Be Broad-Based Debtor Name Searches

February 02, 2017 UCC, Online UCC System, Reduce Financial Risk Something

You have many options to perform a UCC lien search. There are certified searches that come directly from the filing office, state direct database searches that are available on a state’s website, and proprietary search systems that private service companies build and maintain. A while back, First Corporate Solutions published a blog series on evaluating state search options in which we discussed the benefits and drawbacks of each of these…READ MORE

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Time To Choose A UCC Portfolio Manager? Here Are Some Tips To Consider

July 28, 2016 UCC, Online UCC System, Reduce Financial Risk, Tips Something

Is your UCC portfolio growing? Are your UCC management processes growing with it? Are your current UCC solutions able to scale to support your success? For example, have you ever missed the window for filing a UCC3 Continuation, and thus lost your perfected security interest? Are you still managing your UCC portfolio from a spreadsheet? Are you still filing direct with Secretary of States which require you to understand and navigate each…READ MORE

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