Risk Management Blog

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

In previous blog posts we have talked about the importance of a secured party listing the correct debtor name on their UCC1 Financing Statement. Remember, a UCC filing 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. It is dangerous, however to apply… >> READ MORE

In a word, no. The emergence of API for UCC with its increased efficiency and enhanced compliance capability has already occurred and the implementation is spreading. UCC data and portfolio management providers have moved quickly to develop API for UCC and it is now another technology driven differentiator added to their UCC due diligence packages. Much like how UCC portfolio managers and search engines vary in effectiveness and… >> READ MORE

We here at First Corporate Solutions get a lot of inquiries about and requests for good standing certificates. Those of us in the public records industry interact with these documents all the time. Sometimes though, regular folks with no experience in corporate documents are told they need a good standing certificate and they feel lost and confused about what to do. As the title suggests, this week’s blog post aims to provide readers with… >> READ MORE

The Uniform Commercial Code (UCC), first published in 1952, is a collection of provisions that govern commercial transactions in the United States. The UCC itself is not law but instead a compilation of suggested best practices. Article 9 of the UCC regards Secured Transactions, that is “business dealings that grant a creditor a right in property owned or held by a debtor to assure the payment of a debt or the performance of some obligation”… >> READ MORE

A search to reflect, also referred to as a post-filing verification search, is a search of the UCC records of the office where you filed after your UCC filing has posted to the index. It confirms proper indexing of a UCC filing and verifies its priority position relative to other creditors, important benefits of a search to reflect. When to perform a search to reflect on your UCC is key. Since you have to wait for the filing index date… >> READ MORE

Conscientious searchers know that an exhaustive pre-funding due diligence investigation will include a search of court records for civil litigation involving their prospect. Not being attorneys however, many are unsure of what to order or what information they will need to provide to get the ball rolling. In addition to the search name, there are five basic pieces of information you will need to supply in order to secure a relevant and… >> READ MORE

Once a creditor has filed their UCC Financing Statement they’ll likely want to do all they can to maintain their priority position throughout the life of the loan. Lien-monitoring programs offer a great way for a secured party to keep a watchful eye on other lien-holder activity against their debtor. The concept behind lien-monitoring is that the sooner a creditor knows about a lien, the sooner they can act to protect their interests.… >> READ MORE

One of the most common questions we get from customers and prospects is, “What collateral language should I use on my UCC filing to make sure we’re protected?” First Corporate Solutions customer service account managers encounter a lot of UCC Financing Statements and see a variety of different collateral statements included on UCC documents. In spite of this experience, the above is a question we really just can’t answer. The… >> READ MORE

The Uniform Commercial Code contains many terms and phrases that are esoteric to the commercial lending industry—they have a very specific meaning within the code. The definition can be crucial to your due diligence efforts, so it’s important to know the difference. One instance we’ve come across is the difference between an “active UCC filing” and an “effective UCC filing,” which can have an affect on your due diligence.… >> READ MORE