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UCC & Corporate Due Diligence

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Three Top Reasons Why Public Records Research is Essential for an Asset-Based Lender’s Due Diligence Process

Due Diligence, Lien Monitoring

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:

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:

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

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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