Risk Management Blog

When transferring a business with a liquor license there are a few considerations you need to be aware of in regards to lien searching. The California Alcoholic Beverage Control (ABC) can deny a liquor license transfer to a new applicant if all conditions are not met. This reality is why due diligence for liquor license transfers is so important when searching for liens against debtors, especially Mechanics Liens, even though Mechanics Liens… >> READ MORE

Across the nation, state and county-level governments face overwhelming budget shortfalls, dramatically impacting their ability to deliver public services. We learned this week that things are particularly bad in the state of Minnesota. Due to a statewide budget crisis, the Minnesota Secretary of State’s office is facing a potential closure. The Minnesota State Legislature adjourned last month without appropriating money to fund state… >> READ MORE

Due diligence service providers often field phone calls from frantic customers who are in desperate need of a certificate of status, copy of a corporate charter or other corporate documents. Sadly, as much as we’d love to be able to provide these documents to our customers on a same day basis, it is usually not in our power to do so. Here’s why. State filing offices typically provide two categories of service for corporate documents:… >> READ MORE

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