Risk Management Blog

We continue our guest blog series with commercial lending 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. Perfection in Titled Vehicles: Will a lender's notation of its lien on a certificate of title for a vehicle always perfect the lender's security interest? Answer: No. The general rule is that… >> READ MORE

We are pleased to welcome back guest author, attorney, Bennett L. Cohen to the FCS blog! Read on for the ninth installment in his blog series addressing the intricacies of UCC Termination Statements. UCC Termination Statements, a Trap for the Unwary: Part Nine Some secured parties actually instruct a search company to exclude terminated financing statements from the search results, based on the mistaken belief that terminated UCC statements… >> READ MORE

Do you have UCC questions?  Attorney Bennett Cohen of Illinois law firm Cohen, Salk & Huvard, P.C., has the answers. Check out his guest post below. You may also want to check out his free eBook on RA9 Revisions to Individual Debtor Names. Timely UCC Filing: Is there any risk to a lender who files its UCC statement after the loan closing? Answer: Yes, the obvious risk is that an intervening lien (e.g., another UCC filing or… >> READ MORE

We're continuing our examination of control agreements for pledged securities accounts with guest blogger Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. See the introductory post here and the follow-up post, Is there adequate “control” language in the control agreement? Has the Broker subordinated its statutory first priority security interest in the Securities Account to the Lender's security interest in the Securities… >> READ MORE

We are pleased to welcome back guest author, attorney, Bennett L. Cohen to the FCS blog! Read on for the ninth installment in his blog series addressing the intricacies of UCC Termination Statements. UCC Termination Statements, a Trap for the Unwary: Part Ten As discussed last week, more due diligence is necessary if the debtor itself filed the UCC termination. In such case, it is suggested that the secured party issue a letter to you… >> READ MORE

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