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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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

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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

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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

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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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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

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Application Programming Interfaces for UCC – Are All API for UCC Alike?

June 02, 2017 UCC, Online UCC System, Due Diligence Something

In a word, no. The emergence of API for UCC with its increased efficiency and enhanced compliance capability has already occurred and the implementation is spreading. UCC data and portfolio management providers have moved quickly to develop API for UCC and it is now another technology driven differentiator added to their UCC due diligence packages. Much like how UCC portfolio managers and search engines vary in effectiveness and…READ MORE

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FCS Guest Speakers At Bulk Sale Escrow Seminar April 1

March 31, 2017 UCC, Corporate, Event Something

  No Fooling. FCS CEO David Silverburg along with Escrow Compliance Manager Pamela Putnam will present “The Incredible Bulk Sale Superpower—UCCs” at National University in Costa Mesa this Saturday, April 1. The event is co-hosted by the California Escrow Association and The Escrow Training Institute. Seminar moderator Debbi Faber of Chicago Title, a long-time partner and friend to Bulk Sale education in California,…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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