Risk Management Blog

Over the last couple of years, we have seen a dramatic rise in the number of states that allow electronic filing (E-Filing) of UCC  documents. Today, nearly every state accepts UCC filings that are transmitted electronically in some way. For most UCC filers, E-Filing represents an improvement over traditional paper filing since the filing fee for an electronically filed UCC document is typically lower than for a paper filing, and E-Filed UCC’s are generally acknowledged quicker than paper filed documents. Some creditors, however, have decided to forego electronic filing of their UCC documents and stick with traditional “over the counter” processing for their UCC’s. Here’s why.

In many states when a UCC  document is filed electronically, it will undergo minor formatting changes when the information is transmitted to the filing office. These can include changes to font type and font size, reformatting of collateral descriptions, insertion of language referencing an attachment, change of text to ALL CAPS, and so on. Consequently, the acknowledgement copy a creditor receives back from the state may not look exactly like the document they prepared. Even though none of the content is changed in such a way that would challenge the effectiveness of the filing to perfect a security interest, some creditors are not yet comfortable with the practice.

First Corporate Solutions’ (FCS) online UCC filing and portfolio management system offers E-Filing in every state where the filing office accepts UCC documents electronically. And the system alerts users when they are preparing a filing in a state where formatting changes may occur if the document is E-filed, giving users the opportunity to file manually “over the counter” if they prefer.

Want to learn more about FCS Online? Contact us today at 800.406.1577 or info@ficoso.com.

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