What should I do if I accidentally let my UCC1 Financing Statement lapse?
UCC, Tips Something
A UCC1 financing statement is effective for a period of five years. A record that is not continued before its lapse date will cease to be effective, costing the secured party their perfected status and perhaps their priority position to collect.
Once a financing statement has lapsed, it cannot be revived. If the underlying security agreement endures, a secured party should work with their legal or risk management department to determine… >> READ MORE
COVID-19 Federal Aid Application Tips
Well 2020 sure has taken a turn. We went from barely hearing about COVID-19 to a complete worldwide shutdown in just a few months. Not only are there very serious health concerns over the virus, but with most of the “non-essential” workforce being forced to shut their doors or work from home, small businesses are paying the price with decreased revenues and many businesses are being forced to furlough or layoff employees.
To help… >> 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
What Is the Best Legal Structure for Your Start-Up?
Corporate, Tips Something
This is a guest post from Bettina Eckerle of Eckerle Law. She specializes in corporate law and helping companies at every stage of their life cycle.
The questions that invariably come up for all my start-up clients is: Do I have to form a legal entity, if yes, what kind and why? Entrepreneurs have a number of legal structures available when seeking to capitalize on a million dollar idea. Because each type of entity has distinct advantages… >> READ MORE
Tips To Determine Which Party Names To Search When Lien Searching
UCC, Due Diligence, Reduce Financial Risk, Tips Something
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, how… >> READ MORE
Can A UCC Filing Be Terminated By The Debtor?
UCC, Due Diligence, Tips Something
In a word, yes, as long as there is no existing obligation to the lender and one follows a specific process.
The process for debtors to terminate UCC filings on themselves is provided for in the Uniform Commercial Code and can be found here in Section 9-513 of the Uniform Commercial Code. That process includes the below steps:
the Debtor must send an authenticated demand to the secured party
the demand must be sent to the name… >> READ MORE
Work From Home a Work In Progress
Work from home has been around before COVID-19 struck, but for many employers and employees, the time is now.
Workplaces big, small and in between have adapted to meet the pandemic challenge. We now have social distanced offices with mask protocols, ubiquitous sanitizing stations, and when possible, relocated personnel to home office solutions...work from home.
Face-to-face meetings to close deals or to attend… >> READ MORE
Free eBook on Purchase Money Security Interest (PMSI)
UCC, Corporate, Tips Something
First Corporate Solutions is pleased to present our eBook entitled Purchase Money Security Interests: Purchase Money Rules in Equipment and Inventory. Authored by Attorney Bennett L. Cohen of Cohen, Salk & Huvard, P.C., this eBook provides answers to all of your PMSI related questions including:
How is a PMSI created?
What obligations qualify as a PMSI?
Does a PMSI in inventory prime a previosuly perfected interest in accounts?
How… >> READ MORE
Delaware Offers Preclearance Review of Corporate Documents to Reduce Rejections
Corporate, Due Diligence, Tips Something
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
Time To Choose A UCC Portfolio Manager? Here Are Some Tips To Consider
UCC, Online UCC System, Reduce Financial Risk, Tips Something
Is your UCC portfolio growing? Are your UCC management processes growing with it? Are your current UCC solutions able to scale to support your success?
For example, have you ever missed the window for filing a UCC3 Continuation, and thus lost your perfected security interest? Are you still managing your UCC portfolio from a spreadsheet? Are you still filing direct with Secretary of States which require you to understand and navigate each… >> READ MORE