Risk Management Blog

This week we begin a brand new blog series where we will debunk five of the most common misconceptions relating to UCC and corporate due diligence. Over the next few weeks, we will clear up common areas of confusion on corporate filings, lien searching and more! Our customer service account managers regularly receive phone calls from prospective customers who would like to retrieve a copy of a corporation’s bylaws (or operating agreement… >> READ MORE

This week we tackle another common misconception relating to UCC and corporate due diligence: the need for a nationwide UCC search. On occasion, one of our customers will request a nationwide UCC search, meaning they want a search to reflect any UCCs against their party that were filed anywhere in the nation. These searchers have the right idea: be diligent to find out as much as possible about your prospect’s existing financial obligations… >> READ MORE

In phase two of the due diligence cycle, a lender has decided to advance funds. The lender will file a UCC Financing Statement to perfect their interest in the collateral and secure a priority position to collect should the debtor default. It is critical that UCCs get filed correctly since inaccurate or incomplete filings can open the door for secondary parties to claim a priority position. When preparing and filing UCC Financing Statements… >> READ MORE

In phase three of the due diligence cycle, a lender seeks to maintain their priority by managing post-closing events that can jeopardize their ability to collect. Herein we offer several strategies for maintaining priority after filing a UCC Financing Statement. Perform a Search to Reflect A search to reflect is a UCC records search of the office where you filed, after your document has posted to the index.  A search to reflect… >> READ MORE

In the pre-funding phase, lenders perform public records searches to uncover any existing liens or outstanding financial obligations that bind their prospect. Searching helps lenders determine if they could obtain a priority position to collect if they decide to fund the deal. Companies who require additional intelligence and insight in corporate due diligence may wish to hire investigators to assist with the process. Focusing on the… >> READ MORE

It is important to remember that public records research isn’t just a one-time task when evaluating an applicant; rather it should be an ongoing effort to keep an eye on accounts and maintain priority. With today’s blog post, we begin a brand new series that explores three phases during the life of a loan in which a secured party may be required to interact with public records data. Here is a preview of what you can expect from us in… >> READ MORE

Happy 2011! It is a new year and there is a lot going on in the world of due diligence and risk management. What follows is a brief overview of a few stories we will be watching and blogging about this upcoming year. Increased Processing Times Faced with dramatic budget cuts, State filing offices are struggling to meet the public’s demand for quick and efficient access to public records. In 2011, we are likely to see even more delays… >> READ MORE

Last week, we wrapped up our discussion on state direct database searches with an overview of some drawbacks associated with using the UCC search feature on a state’s website. Now we are ready to enter the final stretch of the Evaluating State UCC Search Options blog series by turning our attention to proprietary databases. Herein, we will look at the benefits of using a proprietary database to perform state UCC searches. What is a… >> READ MORE

On the surface, a state direct database search appears to solve several of the key problems associated with a certified search. A certified search is expensive while a state direct database is offered at low to no cost on a state’s website. Whereas turn-around can be slow for a certified listing, a state direct database search offers immediate results. A certified search uses exact name search logic, but a state direct search engine may… >> READ MORE

This week, we continue our series on evaluating state UCC search options. Please refer to our previous blog posts for a discussion of the benefits and drawbacks of a certified UCC search. Now, we turn our attention to the benefits of a state direct database search. What is a State Direct Database Search? We are using the term “state direct database search” to describe a UCC search that is generated using an online search feature… >> READ MORE