Risk Management Blog

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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

First Corporate Solutions is once again proud to sponsor the California Escrow Association's 66th Annual Conference being held in Costa Mesa October 8-9, 2021. The conference features industry speakers, educational sessions, and legislative updates. These sessions are always informative with countless highly connected and informed speakers sharing their insights. As a long-time partner to California’s Bulk Sale Escrow Officers, FCS… >> READ MORE

Delaware Secretary of State released their latest holiday schedule: Friday, November 10, 2023 State Holiday – Veterans Day (observed) – The Division of Corporations will be closed.** Wednesday, November 22, 2023 There will be no change in the regular hours of the Division - the 4-12 shift will be working 4 P.M. to 12 Midnight. Thursday, November 23 & Friday, November 24, 2023 State Holidays - Thanksgiving Day and day… >> READ MORE

In times of economic volatility and uncertainty, lenders face increased challenges in managing risk. In times like these, due diligence becomes a critical aspect of lending practices, particularly when it comes to the Uniform Commercial Code (UCC). By thoroughly understanding and implementing the principles of the UCC, lenders can effectively navigate through an economic downturn while minimizing their risk exposure. Key Challenges During… >> READ MORE

Before using any online UCC or lien search system, be sure to evaluate it carefully to understand its limitations A growing number of state filing offices are offering UCC search databases at low to no cost via their websites. In an effort to keep due diligence costs low, many searchers are turning to state direct online databases to fulfill their UCC search requirements. It’s easy to understand the appeal of these state direct… >> READ MORE

When conducting UCC and lien searches as part of a prefunding due diligence investigation it is a good idea to maximize your results in order to minimize your risk. This strategy helps uncover hidden liens and those filed under critical name variations. To accomplish this, you will want to cast a wide net to bring in as many potential hits as possible and then whittle them down to only those that are pertinent to your transaction. Online… >> READ MORE

One of the basic tenets of the Uniform Commercial Code holds that a terminated UCC filing ceases to be effective. So how can a terminated UCC not really be terminated? There are two scenarios. Scernario 1: When the UCC record contains more than one secured party of record. Under the Uniform Commercial Code, when multiple secured parties exist for a single UCC record, a single secured party can act as representative and file a termination… >> READ MORE

A UCC Financing Statement must properly identify the debtor in order for the UCC to perfect a security interest and provide priority protection for the secured party. To satisfy this requirement, a secured party must complete their Financing Statement using the debtor’s legal name. In general, secured parties understand the importance of properly naming the debtor on their UCC Financing Statements and try hard to comply. Sometimes though,… >> READ MORE

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