How Does UCC Secured Party Representative Service Work?UCC, Online UCC System, Due Diligence, Revised Article 9, Reduce Financial Risk
UCC Secured Party Representative Service is a new service from FCS that provides protection for secured lenders by using a representative’s name (instead of their own) on the Secured Party box on UCC Financing Statements. We’ve had some questions about how it works so we’ve outlined the process in this blog post. But before we get to that, we wanted to point out part of the RA 9 Amendment that makes our UCC Secured Party Representative Service possible.
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. They key to FCS Secured Party Representative Service is that the code allows “a representative” of the secured party to appear on the UCC financing statement, which is where we come in. Here’s the excerpt from RA9:
§ 9-502. CONTENTS OF FINANCING STATEMENT; RECORD OF MORTGAGE AS FINANCING STATEMENT; TIME OF FILING FINANCING STATEMENT.
(a) Subject to subsection (b), a financing statement is sufficient only if it:
(1) provides the name of the debtor;
(2) provides the name of the secured party or a representative of the secured party; and
(3) indicates the collateral covered by the financing statement.
When you file a UCC-1 with our UCC Secured Party Representative Service, we put our representative’s name on the financing statement. In the instance of an inquiry, FCS will promptly forward all authenticated inquiries to you, the secured party, to respond directly. You’ll still perfect your security interest when you file a UCC-1, but we’ll help limit your exposure to competitors’ secured party searches. Secured party searches will no longer be an option, which keeps your client list secure from competitors. You will be able to keep track of all your UCC filings within our UCC portfolio manager just the same as without the service.
To learn more about UCC Secured Party Representative Service, click here or give us a call at 800.406.1577.