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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
This week we tackle another common misconception relating to UCC and corporate due diligence: the need for a nationwide UCC search. On occasion, one of our customers will request a nationwide UCC search, meaning they want a search to reflect any UCCs against their party that were filed anywhere in the nation.
These searchers have the right idea: be diligent to find out as much as possible about your prospect’s existing financial obligations…READ MORE
This week we begin a brand new blog series where we will debunk five of the most common misconceptions relating to UCC and corporate due diligence. Over the next few weeks, we will clear up common areas of confusion on corporate filings, lien searching and more!
Our customer service account managers regularly receive phone calls from prospective customers who would like to retrieve a copy of a corporation’s bylaws (or operating agreement…READ MORE
In phase three of the due diligence cycle, a lender seeks to maintain their priority by managing post-closing events that can jeopardize their ability to collect. Herein we offer several strategies for maintaining priority after filing a UCC Financing Statement.
Perform a Search to Reflect
A search to reflect is a UCC records search of the office where you filed, after your document has posted to the index. A search to reflect…READ MORE