Risk Management Blog

UCC & Corporate Due Diligence

Resource Guide for Legal and Financial Professionals

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,… >> READ MORE


UCC Searching in Delaware

UCC, Due Diligence, Tips Something

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


When is a Terminated UCC Record not Really Terminated?

UCC Something

One of the basic tenets of the Uniform Commercial Code holds that a terminated UCC filing ceases to be effective. So how can a terminated UCC not really be terminated? There are two scenarios. Scernario 1: When the UCC record contains more than one secured party of record. Under the Uniform Commercial Code, when multiple secured parties exist for a single UCC record, a single secured party can act as representative and file a termination… >> READ MORE


UCC Secured Party Representative Service – Explained

UCC, Online UCC System, Revised Article 9 Something

UCC Secured Party Representative Service provides protection for secured lenders by using a representative’s name (instead of their own) in the Secured Party box on UCC Financing Statements. Under Revised Article 9, UCC Section 9-502(a)(2), a financing statement must provide the name of the secured party or representative of the secured party. The Secured Party Representative Service key aspect is that the code allows “a representative”… >> READ MORE


Keeping Copy Costs Down for Your UCC & Lien Searches

UCC, Due Diligence Something

A couple of weeks ago, we featured a post on the blog titled, "Costs for Performing UCC, Lien and Litigation Searches" in which we discussed the types of fees you may encounter when hiring a service company to perform public records research, including: service fees, correspondent/agent fees, statutory/jurisdictional fees and copy costs. In this week’s blog post, we are going to share some additional information on copy costs and offer… >> READ MORE


Civil Judgments vs. Judgment Liens: What’s the Difference?

UCC, Litigation Research Something

If you’re like me when I was first introduced to this industry, you might be a little confused about the difference between judgments and judgment liens. They are two separate animals, and it’s important to know the difference if you’re trying to determine which to search for when doing your due diligence. The easy definition is that a judgment is an official decision rendered by the court with regard to a civil matter. A judgment… >> READ MORE


Maximize UCC and Lien Search Results to Minimize Risk

UCC, Due Diligence Something

When conducting UCC and lien searches as part of a prefunding due diligence investigation it is a good idea to maximize your results in order to minimize your risk. This strategy helps uncover hidden liens and those filed under critical name variations. To accomplish this, you will want to cast a wide net to bring in as many potential hits as possible and then whittle them down to only those that are pertinent to your transaction. Online… >> READ MORE


Secured Creditors and Unsecured Creditors: What’s the Difference?

UCC, Due Diligence Something

There are secured creditors and unsecured creditors. But what is the difference between secured creditors and unsecured creditors? Secured Creditors Secured Creditors are creditors that hold a lien on its debtor’s property, whether that property is real property or personal property. The lien gives the secured creditor an interest in its debtor’s property that provides for the property to be sold to satisfy the debt in cases of default.… >> READ MORE


To Find Legal Name of a Business Debtor, Refer to Organizing Paperwork

UCC, Corporate Something

According to the Uniform Commercial Code, a UCC Financing Statement is only effective if it gets the debtor name right. A UCC Financing Statement that fails to properly identify the debtor by their legal name will not offer the secured party priority status to collect should the debtor default or file for bankruptcy. The Code goes on to say that for registered business debtors, the name that should appear on a UCC Financing Statement… >> READ MORE


Omit “dba” notation from UCC Filings

UCC Something

A UCC Financing Statement must properly identify the debtor in order for the UCC to perfect a security interest and provide priority protection for the secured party. To satisfy this requirement, a secured party must complete their Financing Statement using the debtor’s legal name. In general, secured parties understand the importance of properly naming the debtor on their UCC Financing Statements and try hard to comply. Sometimes though,… >> READ MORE