Risk Management Blog

Effective July 1, 2015, the state of New Jersey will no longer allow for UCC paper filings and electronic filings will be required. In addition to this change, it is important to note that establishing priority will be an issue as UCC filings will no longer be stamped with the time at which the filing was accepted. Further changes to the UCC process in the state of New Jersey regarding collateral and secured party naming to perfect a… >> READ MORE

First Corporate Solutions is pleased to announce the addition of Virginia UCC data to our UCC library of states, available for searching Monday, January 26, 2015. Document images will be added soon to complement our Virginia solution and provide efficiency not accessible at the Virginia SOS itself; as you may already be aware, the Virginia SOS does not have document images online and they must be ordered separately. Until the images… >> READ MORE

One of the more common areas of confusion that surrounds determining the legal name of debtors for input onto UCC Financing Statements involves the punctuation of business debtor names. Imagine a business that filled out their loan application as ABC Trucking Company, Inc. and has this version of their name printed on their letterhead and their business license, but their Articles of Incorporation list the name as A.B.C. Trucking Company,… >> READ MORE

One effect of Revised Article 9 and its implementation has been to better clarify and standardize naming conventions for entering debtor names onto a financing statement. These conventions are not only a guide to successful completion of the forms in order to perfect a security interest, but also to successful searching for financing statements in the indexes in which they are filed. But what about searching indexes that include other… >> READ MORE

The US Court of Appeals for the Second Circuit issued a decision last week that may affect how secured parties authorize third parties to terminate financing statements after a mistakenly authorized UCC termination statement cost the secured party $1.5 billion. This decision underscores the value of UCC lien monitoring services: where secured parties can monitor their own UCC’s for unauthorized or accidental terminations. Also,… >> READ MORE

We continue our examination of control agreements for pledged securities accounts with guest blogger Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. For more background on control agreements, see our introductory post here. Is there adequate "control" language in the control agreement? Some control agreements we reviewed failed to contain the necessary language required for the Lender to be deemed in "control" of the… >> READ MORE

Beginning July 1, 2014, California state law requires use of the revised forms below to be accepted for filing. The following revised UCC filing forms are available on the Secretary of State's Forms and Fees webpage found here: http://www.sos.ca.gov/business/ucc/forms.htm. Here is a list of the revised forms: UCC Financing Statement (Form UCC1) UCC Financing Statement Addendum (Form UCC1Ad) UCC Financing Statement Amendment… >> READ MORE

Do you have UCC questions?  Attorney Bennett Cohen of Illinois law firm Cohen, Salk & Huvard, P.C., has the answers. You may also want to check out his eBook on Purchase Money Security Interests (PMSI). 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, can the lender claim a security interest in… >> READ MORE

UCC searching and filing service providers go to great lengths to keep their customers’ data secure. Technology and in-house procedures provide safeguards to keep your data protected from outside sources. Since service providers, along with state and county filing offices, are the gatekeepers of public records containing transactional information, this is good thing. The nature of the Uniform Commercial Code, however, exposes an important… >> READ MORE

Expanded State Details Expanded State Details for online search states allow users to know what lien types are included in the data, discover the date range for FCS Online images and learn about any state-specific data idiosyncrasies that may affect their search result. Simplified Ordering Enhanced state selection menu merges online and offline search states for simplified ordering of offline searches. Users select an offline state… >> READ MORE