Risk Management Blog

In concert with Commercial Finance Associations’ annual conference, below are links pertinent to CFA members about lien and documentation due diligence from previous blog posts. First Corporate Solutions is proud to once again support the CFA and we invite you all to explore the links below and then drop by our exhibit booth later this week. Let us know any questions and see you in Austin! Are you considering ways to streamline and… >> READ MORE

… >> READ MORE

Once a creditor has filed their UCC Financing Statement they’ll likely want to do all they can to maintain their priority position throughout the life of the loan. Lien-monitoring programs offer a great way for a secured party to keep a watchful eye on other lien-holder activity against their debtor. The concept behind lien-monitoring is that the sooner a creditor knows about a lien, the sooner they can act to protect their interests.… >> READ MORE

Timing is critical when filing business entity documents . In many cases, proof of filing is a necessary step towards accomplishing other important tasks such as entering into contracts or opening a business bank account. Whether filing original formation documents or other papers related to the maintenance of a business entity, a rejected document can cost a filer time they can’t really afford to lose. There are many reasons why a filing… >> READ MORE

In times of economic volatility and uncertainty, lenders face increased challenges in managing risk. In times like these, due diligence becomes a critical aspect of lending practices, particularly when it comes to the Uniform Commercial Code (UCC). By thoroughly understanding and implementing the principles of the UCC, lenders can effectively navigate through an economic downturn while minimizing their risk exposure. Key Challenges During… >> READ MORE

In last week’s blog post, we noted that a creditor files a UCC Financing Statement to give public notice of their interest in a debtor’s collateral and to secure a priority position to collect should the debtor default. This week we are going to talk a little more abut UCC Financing Statements by looking at the National UCC Financing Statement form. You can follow this link to the National UCC Financing Statement form and Instructions:… >> READ MORE

Before using any online UCC or lien search system, be sure to evaluate it carefully to understand its limitations A growing number of state filing offices are offering UCC search databases at low to no cost via their websites. In an effort to keep due diligence costs low, many searchers are turning to state direct online databases to fulfill their UCC search requirements. It’s easy to understand the appeal of these state direct… >> READ MORE

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

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

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