Risk Management Blog

House Bill 265 w/HA1, HA3/Title 8 has been signed into effect by the Governor of Delaware. The bill is effective immediately, but the state is offering a grace period until July 1,2014 before enforcing the new tax rates. This Act increases the annual tax assessed on partnerships, limited partnerships and limited liability companies on file with the Secretary of State from $250 to $300 and increases the corporation franchise tax by $100… >> READ MORE

It should come as no surprise to anyone who has worked with the Delaware Secretary of State on a regular basis that some of the Business Entity and UCC Fees and Services are going to change as of August 1st of this year. The DE SOS already offers one-hour and two-hour expedited services for corporate filings (along with the usual same-day and 24-hour expedites), and now they’re rolling out a 30-minute service for a small fee of $3,000.00.… >> READ MORE

First Corporate Solutions recently hosted a free webinar event, Delaware, Corporate Capital of the World. For those of you who were unable to attend, we recap some of the main points from that presentation here in this blog post. As most of you are aware, Delaware is an incredibly popular state for business formations . The state’s tax codes, chancery court, body of law and state legislature all promote a business friendly philosophy… >> READ MORE

The collateral description of a UCC  Financing Statement is important, it is where the secured party details what items the debtor has offered as collateral to secure the loan. To effectively mitigate a creditor’s risk for loss and fend off challenges from other creditors, a UCC filing must adequately describe the collateral. Figuring out how to describe the collateral on a UCC Financing Statement to best protect your interests can… >> READ MORE

A Secured Party must file their UCC1 Financing Statement quickly and correctly in order to perfect their security interest. Inaccurate, incomplete or untimely filings can prove costly for lenders as they open the door for secondary parties to claim a priority position. Here are a few common mistakes to watch for when filing UCC1 Financing Statements: Avoid “dba” notation for fictitious or assumed business names as debtor Failure… >> READ MORE

The pandemic has caused much uncertainty in the lending ecosystem and will continue to do so since most industry experts expect an uptick in loan defaults. Today, more than ever, lenders are focused on minimizing their risks when entering a financial transaction. Two key components in the lenders’ due diligence process when entering a transaction are conducting consensual and non-consensual lien searches, and filing a UCC-1 against… >> READ MORE

In last week’s blog we discussed items to consider when evaluating proprietary online UCC search systems. You can read that post here. This week we look deeper at one aspect to consider in your evaluation process:  what is broad-based search logic and why is it important that your UCC and lien search solutions provide it? First, you need an understanding of the Model Administrative Rules (MARS) and the baseline they create. You can… >> READ MORE

An important perfection rule to Canada’s Personal Property Security Act (Ontario) changed on December 31, 2015. The change aligns Ontario with the US Uniform Commercial Code’s Article 9 with regards to Specified Collateral. Previously in Ontario secured parties were directed to perfect their security interests in Specified Collateral following the law of the jurisdiction regarding a debtor’s “location”—its “place of business”,… >> READ MORE

We continue our guest blog series on commercial lending this week with attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook: Important Revisions To Article 9′s Rules Regarding Individual Debtors. Deposit Account As Collateral: If a lender has a security interest in equipment or inventory and such collateral is sold and the proceeds deposited in a bank that is not the lender,… >> READ MORE

For those managing personal property transactions in California, it is important to understand and be prepared for recent legislation that has been passed to provide a safe harbor for proper entry of individual debtor names when filing and searching for UCC Financing Statements. Effective January 1, 2015, California will join the majority of states in adopting legislation which governs the proper name identification of individuals. This… >> READ MORE