Risk Management Blog

Many of our clients in California are unsecured creditors, which means they do not file a security interest (such as a UCC) to ensure they are paid for products or services rendered. They essentially ‘front’ their product and expect their invoices to be paid in a timely fashion. Whether they are a wholesale produce distributor, waste management company or an office supply wholesaler, we have seen them experience the same problem—when… >> READ MORE

Considering all the effort and resources you put into qualifying your debtors and perfecting your security interests, it's good to know there are some excellent tools you can utilize to help maintain that priority and make your efforts pay off. Why go to all the trouble to investigate a potential new debtor’s credit worthiness, and decide to perfect your security interest by filing a Financing Statement in the correct jurisdiction, if… >> READ MORE

A recent court ruling in Wisconsin once again has affirmed the supreme importance secured parties must place on their data entry procedures when naming debtors on financing statements to perfect their security interests. A recap of the case can be found here. Once again, a typo in the debtor name created a UCC filing that was judged to be seriously misleading, and therefore left the secured party’s security interest with the debtor… >> READ MORE

Searching the correct party and correct legal name is imperative when coordinating due diligence search efforts. It is important to search all names under which liens could be filed. This may seem simple and obvious, but keep in mind that liens, particularly involuntary liens like federal tax liens and judgment liens, could be filed under business names, individual names, aliases, nicknames, or even fictitious business names. So,… >> READ MORE

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

With so many businesses organizing in Delaware, it has become a high volume UCC search state. It is crucial to have a good working knowledge of a state’s search logic prior to ordering or performing UCC searches in that jurisdiction. Here are some important notes on UCC searching in Delaware: Exact Name Search Logic Search logic varies from state to state. Some states have online access to their UCCs offering broad-based search… >> READ MORE

Federal tax liens are regularly filed at county filing offices across the country, so your account monitoring process should include those jurisdictions. In our experience, we see many federal tax liens being filed at the county instead of the state filing office. A federal tax lien, whether filed at the state or the county, may affect your priority position; therefore it is critical to keep an eye on lien-holder activity at both the state… >> READ MORE

A Secured Party must file their UCC1 Financing Statement quickly and correctly in order to perfect their security interest. Inaccurate, incomplete or untimely filings can prove costly for lenders as they open the door for secondary parties to claim a priority position. Here are a few common mistakes to watch for when filing UCC1 Financing Statements: Avoid “dba” notation for fictitious or assumed business names as debtor Failure… >> READ MORE

We have published a lot of material on the topic of UCC searching over the years. Effective UCC searching can save you time and money, so this topic has been popular among our readers. Today, we are starting a six part blog series on the nature of broad based searching and search logic as it relates to UCC searching. Enjoy our first post, and please remember that these blog posts are for educational purposes only; always consult your legal… >> READ MORE

You would think that something called Uniform Commercial Code (UCC) would be uniform throughout the states, right? If only it were. As folks who regularly file UCC filings nationwide know, Uniform Commercial Code varies widely from state to state. In Georgia, for instance, you have to pick a county in which to file even though all UCC filings are recorded in a centralized statewide database. In order to file a UCC-3, you need to make… >> READ MORE