Risk Management Blog

In our continued focus on the importance of public records research to a secured party’s security interest perfection process, today we list three of the main reasons. So why is public records research essential to an Asset-based lender’s due diligence processes?

1. To determine priority before filing

A public records search uncovers pre-existing liens (like Federal and State tax liens, Judgment liens and UCCs) which can prevent the perfection of a security interest. You can learn more about it here:

• Benefits of Tax Lien and Judgment Searches (Reference Guide)
• Basics of Lien Priority (Archived Webinar)
• Perfecting and Maintaining a security Interest, Traps for the Unwary (Archived Webinar)

2. To assure maintenance of an already perfected security interest

Periodic update searches reveal public record events of note that can potentially prime a perfected security interest, from lien filings to changes in business entity names or jurisdictions to a loss of Good Standing. You can read more about it here:

• Latest Court Decision Highlights the Value Of UCC Lien Monitoring Services (Blog Post)
• Did You Know a Judgment Lien can Potentially Prime Your Perfected Security Interest? (Blog Post)
• Importance of County-Level Lien Monitoring (Reference Guide)

3. To determine if a client or potential debtor is in Good Standing with the state agencies. You can read more about it here.

• Understanding and Obtaining Good Standing Certificates (Reference Guide)

If you are interesting in a lien monitoring solutions, feel free to contact us here and see how you can mitigate your financial risk.

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