Risk Management Blog

Most of us know that tons of businesses choose to file in Delaware, but what’s so great about the First State? More than half of the corporations that make up the Fortune 500 are incorporated in Delaware, and for good reason. The easy answer to this question is that it doesn’t cost much to incorporate in Delaware compared to most other states; plus, if you don’t actually conduct business in Delaware you don’t have to pay corporate… >> READ MORE

For a Secured Party, filing timely continuations for existing UCC1 Financing Statements is a critical step in maintaining a priority position to collect on debts. A UCC1 Financing Statement is effective for a period of five years. If not continued before its lapse date, a Financing Statement will cease to be effective, thereby allowing subsequent filers to secure a priority position. Figuring out when to file a Continuation can be confusing,… >> READ MORE

So, you just discovered that your UCC Financing Statement has been fraudulently terminated by the debtor. You are likely wondering what comes next. Is there anything you can do to reassert your priority position and minimize your risk? Don’t panic, there are several ways you can address the situation. Here are a few options you may want to explore: Do nothing There are only a few instances where a debtor-authorized termination is… >> READ MORE

When searching for liens as part of a prefunding search package, it is important to know where liens could be filed. The last thing any lender wants is a surprise lien! In order to be certain you’re getting the results you think you are; searches must be performed for the right records at the appropriate filing office. Here are some tips to help determine where to search: 1. Revised Article 9 sets forth that UCC Financing… >> READ MORE

In most states, filing articles of incorporation (or organization) is a pretty straightforward process - fill out a form, collect a signature, and send the document off to be filed. Nevertheless, corporate filings often get rejected and it is usually for simple errors. Download this free guide from First Corporate Solutions to learn three easy tips to help guard against rejection of your business formation filings. Click Here to Download… >> READ MORE

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 With so many businesses organizing in Delaware, it has become one of the highest volume UCC search states. Download this free reference guide from First Corporate Solutions to learn more about UCC searching in Delaware. Click Here to Download Now! How Can First Corporate Solutions Help? First… >> READ MORE

A civil litigation search is a critical piece of any thorough pre-funding due diligence investigation. Some lenders though are unsure about how exactly to order their search to achieve the best results. In addition to the search name, there are five basic pieces of information you will need to supply in order to secure a relevant and useful civil litigation search result. Download this free reference guide from First Corporate Solutions… >> READ MORE

There are not many errors you can make that will cause a filing officer to reject a UCC1 Financing Statement.  For the filing officer to accept a UCC for filing, the document must meet a set of minimum requirements. If a UCC document meets the minimum requirements and the correct filing fee accompanies the document, the Uniform Commercial Code directs the filing officer to accept the document into the public record. While these requirements… >> READ MORE

The last 15-20 years have seen a steady and dramatic increase in the cost for recording real estate related documents in the state of California, owing in large part to the growing list of surcharges and add-on fees that are imposed at the time of recordation. That got some of us here at FCS thinking, “What ARE all of these surcharges?”  To answer this question, we analyzed a recent receipt for a recording in Los Angeles County and… >> READ MORE

In order to fend of challenges to their priority position, UCC filers must keep their filing information accurate and up-to-date. This is accomplished by filing the appropriate UCC3 Statement. There are five types of UCC3 Filings: Continuations extend the term for a Financing Statement by an additional five years Party Amendments add, delete or change debtor or secured party information Collateral Amendments add, delete or restate… >> READ MORE