Risk Management Blog

That’s a good question, and revisions to Article 9 of the Uniform Commercial Code over the years has looked to clarify the answer. It comes down to determining the business entities’ State of Organization and the State of Residence for individuals. Revised Article 9 sets forth that UCC Financing Statements filed against business entities are to be filed in their state of organization. UCCs filed against individuals must be filed in… >> READ MORE

One of the most common areas of confusion relating to public records searching has to do with the costs incurred for search requests, particularly those requests that a customer places with a private service company. The fees associated with this type of research are varied and an invoice may use terminology that is unfamiliar to those with infrequent searching needs. Herein, we offer some guidelines for what types of fees you can expect… >> READ MORE

Lenders gather information from a variety of sources to create a comprehensive profile of an applicant’s existing financial obligations and gauge their ability to repay debts. By the time the lender is ready to initiate public records searches on a prospect, they often already have an idea of what they expect to find based on applicant disclosures and credit report information etc. However, it is uncommon for a lender to provide this information… >> READ MORE

We’re back at it with more UCC terminology and definitions! Last week, we discussed the difference between “active” and “effective” UCC filings, and this week we’re moving on to the definitions of “lapsed” and “purged” filings. Lapsed UCC filing: The filing has passed its effective period and no continuation has been filed. Purged UCC filing: The filing has been removed from the index and is no longer searchable… >> READ MORE

The State of Delaware offers Preclearance Review of Corporate Documents to assist filers through the corporate filing process and reduce the number of filings that do not meet required criteria. Various preclearance corporate filing services are offered and their official review procedures are a convenient way to avoid potential processing errors. This service assures that you have accurately drafted your corporate document before formally… >> READ MORE

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

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 continue our examination of control agreements for pledged securities accounts with guest blogger Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. For more background on control agreements, see our introductory post here. Is there adequate "control" language in the control agreement? Some control agreements we reviewed failed to contain the necessary language required for the Lender to be deemed in "control" of the… >> READ MORE

Beginning July 1, 2014, California state law requires use of the revised forms below to be accepted for filing. The following revised UCC filing forms are available on the Secretary of State's Forms and Fees webpage found here: http://www.sos.ca.gov/business/ucc/forms.htm. Here is a list of the revised forms: UCC Financing Statement (Form UCC1) UCC Financing Statement Addendum (Form UCC1Ad) UCC Financing Statement Amendment… >> READ MORE