Why Would a Lender Establish a Security Interest for a Loan?
UCC, Revised Article 9 Something
If you're new to the Uniform Commercial Code (UCC), you'll need a few basic definitions before we answer that. We'll start you off with a few terms that are the building blocks of UCC search and filing procedures.
Secured Transaction: This is a loan in which the lender acquires a security interest in collateral that belongs to the debtor.
Security Interest: This is a lender's claim to collateral that a debtor has provided for a loan.… >> READ MORE
Why Include Similar Names in Searches to Locate Tax Liens and Mis-Indexed Filings
UCC, Due Diligence, Revised Article 9 Something
According to Revised Article 9 of the Uniform Commercial Code, a UCC Financing Statement is only effective if it gets the debtor name right. A UCC filing that fails to properly identify the debtor by their exact legal name will not offer the secured party priority status to collect should the debtor default or file for bankruptcy. Searchers often mistakenly interpret this to mean they only need be concerned with filings that provide an exact… >> READ MORE
How to Protect Your Client List From UCC Secured Party Searches
UCC, Services / System Update, Online UCC System, Revised Article 9, Reduce Financial Risk Something
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
What’s the Difference Between an “Active UCC Filing” and an “Effective UCC Filing?”
UCC, Due Diligence, Revised Article 9 Something
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
What are “Standard Search Logic” and the Model Administrative Rules?
UCC, Online UCC System, Revised Article 9 Something
The amount of liens filed in a given state’s filing office can number in the millions making accuracy, and the ability to uncover name variations, paramount when analyzing search results. Each individual Secretary of State filing office has a set of rules called “standard search logic” that determines what search results will show for a given search. Here’s the official definition:
Standard Search Logic: The search logic used… >> READ MORE
What is a Secured Transaction? Understanding Article 9 of the Uniform Commercial Code
UCC, Revised Article 9 Something
As promised, this week’s blog post will delve a little deeper into the Uniform Commercial Code (UCC) through a discussion of Article 9: Secured Transactions.
According to the Law Library, Secured Transactions are, “Business dealings that grant a creditor a right in property owned or held by a debtor to assure the payment of a debt or the performance of some obligation.”
In a little more detail, a Secured Transaction is a financial… >> READ MORE
UCC Secured Party Representative Service – Explained
UCC, Online UCC System, Revised Article 9 Something
UCC Secured Party Representative Service provides protection for secured lenders by using a representative’s name (instead of their own) in the Secured Party box on UCC Financing Statements.
Under Revised Article 9, UCC Section 9-502(a)(2), a financing statement must provide the name of the secured party or representative of the secured party. The Secured Party Representative Service key aspect is that the code allows “a representative”… >> READ MORE
Has the Broker subordinated its statutory first priority security interest in the Securities Account to the Lender’s security interest in the Securities Account?
UCC, Due Diligence, Revised Article 9 Something
We're continuing our examination of control agreements for pledged securities accounts with guest blogger Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. See the introductory post here and the follow-up post, Is there adequate “control” language in the control agreement?
Has the Broker subordinated its statutory first priority security interest in the Securities Account to the Lender's security interest in the Securities… >> READ MORE
Is there adequate “control” language in the control agreement?
UCC, Due Diligence, Revised Article 9 Something
We continue our examination of control agreements for pledged securities accounts with guest blogger Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. For more background on control agreements, see our introductory post here.
Is there adequate "control" language in the control agreement?
Some control agreements we reviewed failed to contain the necessary language required for the Lender to be deemed in "control" of the… >> READ MORE
[Important] Notice of Change – New UCC Filing Forms
UCC, Online UCC System, Due Diligence, Revised Article 9 Something
Beginning July 1, 2014, California state law requires use of the revised forms below to be accepted for filing. The following revised UCC filing forms are available on the Secretary of State's Forms and Fees webpage found here:
http://www.sos.ca.gov/business/ucc/forms.htm.
Here is a list of the revised forms:
UCC Financing Statement (Form UCC1)
UCC Financing Statement Addendum (Form UCC1Ad)
UCC Financing Statement Amendment… >> READ MORE
