Risk Management Blog

We have previously posted several tips on how to avoid errors when filing a UCC1 Financing Statement, and in this blog post we've rounded up some of the most common mistakes.  Submitting  a UCC1 Financing Statements with mistakes may have legal consequences, so double check your filing for any of the errors listed below to minimize your risk. 1. Failing to file under the exact legal name A UCC filing must properly identify the debtor… >> READ MORE

This is a guest post from attorney Bennett Cohen of the law firm Cohen, Salk & Huvard, P.C. You may also want to check out his eBook Important Revisions To Article 9′s Rules Regarding Individual Debtors. Control Agreement for Pledged Deposit Account: Does the depository bank need to subordinate its security interest in the pledged deposit account to a lender's security interest granted in the pledged deposit account? Answer:… >> READ MORE

The Uniform Commercial Code contains many terms and phrases that are esoteric to the commercial lending industry—they have a very specific meaning within the code. The definition can be crucial to your due diligence efforts, so it’s important to know the difference. One instance we’ve come across is the difference between an “active UCC filing” and an “effective UCC filing,” which can have an affect on your due diligence.… >> READ MORE

First Corporate Solutions is pleased to announce the release of Kentucky data and image library to our online UCC search system. As of Monday, August 4, 2014, active online users can log on to www.ficoso.com and search our reliable state-direct UCC and tax lien data complemented by an expansive library of clear, downloadable document images. FCS adds value to Kentucky data by including data on expired filings (not currently available… >> READ MORE

We’re back at it with more UCC terminology and definitions! Last week, we discussed the difference between “active” and “effective” UCC filings, and this week we’re moving on to the definitions of “lapsed” and “purged” filings. Lapsed UCC filing: The filing has passed its effective period and no continuation has been filed. Purged UCC filing: The filing has been removed from the index and is no longer searchable… >> READ MORE

If you're new to the Uniform Commercial Code (UCC), you'll need a few basic definitions before we answer that. We'll start you off with a few terms that are the building blocks of UCC search and filing procedures. Secured Transaction: This is a loan in which the lender acquires a security interest in collateral that belongs to the debtor. Security Interest: This is a lender's claim to collateral that a debtor has provided for a loan.… >> READ MORE

Following up on our post from earlier this week, What are “Standard Search Logic” and the Model Administrative Rules?, here's a behind-the-scenes look at how we created an online UCC search system that follows MARS guidelines. An FCS online search report is intended to satisfy the requirements under the UCC Revised Article 9 Model Administrative Rules (MARS), which provide state filing offices with a set of guidelines for producing… >> READ MORE

The amount of liens filed in a given state’s filing office can number in the millions making accuracy, and the ability to uncover name variations,  paramount when analyzing search results. Each individual Secretary of State filing office has a set of rules called “standard search logic” that determines what search results will show for a given search. Here’s the official definition: Standard Search Logic: The search logic used… >> READ MORE

The short answer is that searching Tax Liens and Judgment Liens while conducting your due diligence might save you money and hassle, but let’s back up and explain the reasoning. The first thing to understand is that both Tax Liens and Judgment Liens have priority relative to other types of liens, such as a UCC, based on the date of its filing, and this affects your ability to collect. For example, if your debtor has an outstanding Tax… >> READ MORE

We are pleased to announce the release of Georgia data to our online UCC system. Beginning November 3, 2014, FCS online clients may search the state’s database of more than 3 million filings within our online UCC system. The FCS online UCC system was designed with the high volume searcher in mind. For example, on the FCS system you can see full, detailed results with just one click, instead of having to open multiple screens. You will… >> READ MORE