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Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Keeping Copy Costs Down for Your UCC & Lien Searches

UCC, Due Diligence Something

A couple of weeks ago, we featured a post on the blog titled, "Costs for Performing UCC, Lien and Litigation Searches" in which we discussed the types of fees you may encounter when hiring a service company to perform public records research, including: service fees, correspondent/agent fees, statutory/jurisdictional fees and copy costs. In this week’s blog post, we are going to share some additional information on copy costs and offer… >> READ MORE


Maximize UCC and Lien Search Results to Minimize Risk

UCC, Due Diligence Something

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


Secured Creditors and Unsecured Creditors: What’s the Difference?

UCC, Due Diligence Something

There are secured creditors and unsecured creditors. But what is the difference between secured creditors and unsecured creditors? Secured Creditors Secured Creditors are creditors that hold a lien on its debtor’s property, whether that property is real property or personal property. The lien gives the secured creditor an interest in its debtor’s property that provides for the property to be sold to satisfy the debt in cases of default.… >> READ MORE


Does the control agreement govern if it conflicts with any of the customer agreements between Pledgor and Broker?

UCC, Due Diligence, Revised Article 9 Something

Attorney Bennett Cohen returns this week to continue his examination on control agreements for pledged securities accounts. This is part six in our eight part series on the topic of control agreements. To start from the beginning, please see the first post, Examining Issues with Control Agreements for Pledged Securities Accounts. Does the control agreement govern if it conflicts with any of the customer agreements between Pledgor… >> READ MORE


Does the control agreement go too far in limiting the potential liability of the Broker?

UCC, Due Diligence, Revised Article 9 Something

We're back this week with more in our series from attorney Bennett Cohen on control agreements for pledged securities accounts. This is the fourth post in our series, so if you need a refresher please visit his introductory post, Examining Issues with Control Agreements for Pledged Securities Accounts. We've reviewed quite a number of control agreements which provide that the Broker shall have no liability to the Lender except for… >> READ MORE


Did You Know a Judgment Lien Can Potentially Prime Your Perfected Security Interest?

UCC, Due Diligence Something

It’s not common knowledge, common in the way everyone knows how a Federal tax lien can prime a perfected security interest. But it’s true. Check out this article from Pahl McCay’s Catherine Robertson discussing the subject. Her final recommendation can be found at the end of her article, “we recommend you maintain a monitoring service for lien filings against your debtors.” The critical aspect here is that the monitoring… >> READ MORE


Delaware to Increase Minimum Tax Fee for Corporations and Annual Tax Fee for Alternative Entities

UCC, Corporate, Due Diligence Something

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


California Governor signs Assembly Bill 1858: Individual Debtor Name Safe Harbor

UCC, Legislation, Due Diligence, Revised Article 9 Something

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


Broad Based UCC and Lien Name Searching: What is it? Why is it Important?

UCC, Due Diligence Something

There are many options available for those looking to perform a UCC and lien search. There are certified searches that come directly from the filing office, state direct database searches that are available on a state’s website, and proprietary search systems that private service companies build and maintain. A while back, First Corporate Solutions published a blog series on evaluating state search options where we discussed the benefits… >> READ MORE


Broad Based UCC and Lien Name Searching – FCS Greatest Hits #1

UCC, Online UCC System, Due Diligence, Revised Article 9, Tips Something

We have published a lot of material on the topic of UCC searching over the years. Effective UCC searching can save you time and money, so this topic has been popular among our readers. Today, we are starting a six part blog series on the nature of broad based searching and search logic as it relates to UCC searching. Enjoy our first post, and please remember that these blog posts are for educational purposes only; always consult your legal… >> READ MORE