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Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

Don’t overlook a federal tax lien filed at the county

Tips, Lien Monitoring Something

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


Common Mistakes on Filing UCC1 Financing Statements

UCC, Tips Something

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


Broad Based UCC and Lien Name Searching – FCS Greatest Hits #1

UCC, Online UCC System, Due Diligence, Revised Article 9, Tips Something

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


All UCCs (Uniform Commercial Code) Are Not Created Equal

UCC, Tips Something

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


Tips To Maintain Your Perfected Security Interest

Reduce Financial Risk, Tips, Lien Monitoring Something

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


How California Unsecured Creditors Can Protect Themselves From Bad Debt Losses

Reduce Financial Risk, Tips Something

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


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

Tips Something

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