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Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Costs to Perform a Lien, UCC, Litigation or Bankruptcy Search

UCC, Corporate, Litigation Research, Due Diligence Something

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

To Find Legal Name of a Business Debtor, Refer to Organizing Paperwork

UCC, Corporate, Litigation Research, Due Diligence Something

According to the Uniform Commercial Code, a UCC Financing Statement is only effective if it gets the debtor name right. A UCC Financing Statement that fails to properly identify the debtor by their legal name will not offer the secured party priority status to collect should the debtor default or file for bankruptcy. The Code goes on to say that for registered business debtors, the name that should appear on a UCC Financing Statement… >> READ MORE

Three Top Reasons Why Public Records Research is Essential for an Asset-Based Lender’s Due Diligence Process

Due Diligence, Lien Monitoring Something

In our continued focus on the importance of public records research to a secured party’s security interest perfection process, today we list three of the main reasons. So why is public records research essential to an Asset-based lender’s due diligence processes? 1. To determine priority before filing A public records search uncovers pre-existing liens (like Federal and State tax liens, Judgment liens and UCCs) which can prevent… >> READ MORE

Tax Lien Searching Blog Series Part Two: Ordering a Tax Lien Search

Due Diligence, Lien Monitoring Something

In last week's blog post we discussed the importance of searching tax lien records as part of your pre-funding due diligence search efforts. This week, we'll go over a few tips for ordering tax lien searches to achieve the best results. There are three important things to keep in mind when searching for tax liens. The first is the scope of the search. Most tax liens are effective for a period of ten years and can be renewed. So you will… >> READ MORE

Post-filing Searches: How Long to Wait to Order a Search to Reflect

Due Diligence Something

During the question and answer period following a recent First Corporate Solutions webinar event, an attendee asked a great question. She asked, “How long should I wait after filing my UCC to order the search to reflect?” This week, we’ll devote a blog post to sharing the answer with all of our readers. As a refresher, a search to reflect is a search of the UCC records of the office where you filed, after your document has posted… >> READ MORE

How to Handle Cancellation Instructions in California?

Due Diligence Something

We welcome our blog contributor PJ Garcia of Beach Escrow this week to discuss her view on cancellation instructions this week. Cancellation instructions are always a concerning and sometimes controversial area. In the November Residential Purchase Agreement (RPA) revision, California Association of Realtors (CAR) included some language that provides for unilateral cancellation of a sort which presents one of those controversies. Upon review… >> READ MORE

Free eBook on Lien-Related Post Funding Due Diligence

Due Diligence, Reduce Financial Risk, Lien Monitoring Something

As a lender, you need to know immediately if your customer is experiencing financial distress that could result in bankruptcy or debtor default. In this FREE guide you will find: Top 5 Mistakes to Avoid on UCC Financing Statements What a Search to Reflect can do for you When to File Continuation Statements Lien Monitoring Programs Importance of Monitoring to Reveal Name Variations Download this free guide today! >> READ MORE

Choosing a Monitoring Solution that is Right for Factors & Asset-Based Lenders

Due Diligence, Lien Monitoring Something

As asset-based lenders and factors, you are aware that different loan types provide different risks and rewards, and as lenders and risk takers you look to capitalize on this fact. Because of the nature of your lending practices, there are specific solutions that have been designed to monitor a perfected security interest and assist secured parties in maintaining their perfected security interest once a UCC financing statement has been filed. Many… >> READ MORE

Wondering What Parties to Search as Part of Your Prefunding Due Diligence?

Corporate, Due Diligence, Revised Article 9, Tips Something

Searching for the right party is imperative when coordinating due diligence search efforts. This may seem simple, but keep in mind that liens could be filed under business names, individual names, aliases or nicknames, even fictitious business names. So, how can you be sure you are searching for the right name? Here are a few pointers to get you on the right track: 1. Check corporate charters to determine the exact legal name before… >> READ MORE

Top 5 Misconceptions About UCC & Corporate Due Diligence Series # 5: Omit “dba” notation from UCC Filings

Corporate, Due Diligence Something

A UCC Financing Statement must properly identify the debtor in order for the UCC to perfect a security interest and provide priority protection for the secured party. To satisfy this requirement, a secured party must complete their Financing Statement using the debtor’s legal name. In general, secured parties understand the importance of properly naming the debtor on their UCC Financing Statements and try hard to comply. Sometimes though,… >> READ MORE