Risk Management Blog

When evaluating lien monitoring programs, programs that are designed to monitor your Financing Statements for lien filings that can prime your perfected security interest, it is important to recognize that many states do not maintain records of Federal Tax Liens or Judgment Liens Attached to Real Property at the state-level filing office. Nevertheless, these liens have the potential to prime a perfected security interest. That’s why,… >> READ MORE

The Merchant Cash Advance market continues to rise and this week we take a closer look at it. A merchant cash advance started as lump sum payments to businesses in exchange for a percentage of future credit card/debit card transactions. It’s a way for businesses to gain cash quickly while also structuring a relatively short-term payment plan. Businesses which perhaps met some difficulties accessing capital in the traditional avenues… >> READ MORE

The simple purpose of UCC and lien searching is to minimize your lending risk by accurately informing your lending decisions. UCC and lien searching is not a black or white process, however; the quality of your search results plays a essential role in helping you to determine that risk. If for any reason your search results are inaccurate or incomplete, your effectiveness in mitigating your lending risk is diminished. Read on for tips… >> READ MORE

In honor of the 2014 Factoring Conference, we compiled some of our favorite tips on choosing a lien monitoring solution, a service that all asset-based lenders and factors need to help mitigate risk. Here is a quick ‘stress test’ you can give your lien monitoring approach to see if it’s up to scratch. Does your lien monitoring program… Quickly Alert You of Federal Tax Lien Filings? Many creditors consider Federal Tax Liens the… >> 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 continue our guest blog series with commercial lending attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook: Important Revisions To Article 9′s Rules Regarding Individual Debtors. Perfection in Titled Vehicles: Will a lender's notation of its lien on a certificate of title for a vehicle always perfect the lender's security interest? Answer: No. The general rule is that… >> READ MORE

UCC searching and filing service providers go to great lengths to keep their customers’ data secure. Technology and in-house procedures provide safeguards to keep your data protected from outside sources. Since service providers, along with state and county filing offices, are the gatekeepers of public records containing transactional information, this is good thing. The nature of the Uniform Commercial Code, however, exposes an important… >> READ MORE

This is a guest post from attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook Important Revisions To Article 9′s Rules Regarding Individual Debtors. Control Agreement for Pledged Deposit Account: Does the depository bank need to subordinate its security interest in the pledged deposit account to a lender's security interest granted in the pledged deposit account? Answer:… >> 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