QUICK TIP: Maintaining Priority After Filing a UCC Financing StatementApril 26, 2013 UCC
After filing their UCC Financing Statement , lenders seek to maintain their priority by managing post-closing events that can jeopardize their ability to collect. Here are three quick tips for maintaining priority after filing a UCC .
1. Perform a Search to Reflect
A search to reflect is a search of the UCC records of the office where you filed a UCC after your document has posted to the index. A search to reflect will confirm how the state indexed your document and reveal any filing office errors made when indexing your filing.
2. Monitor Other Lien Holder Activity
Lien monitoring programs perform frequent update searches on your debtors to check for any new filing activity and alert you to potential credit risks. The idea behind monitoring programs is that the sooner you know, the sooner you can act to protect your
3. File Timely Continuations
A UCC1 Financing Statement is effective for a period of five years from its date of filing. As a secured lender, it is critical for a secured party to file timely continuations, as a lapsed filing ceases to be effective and opens the door for a subsequent filer to move into a priority position.
First Corporate Solutions’ expert staff and web-based solutions provide the tools and support you need to perfect and maintain your security interests. Contact us today to at firstname.lastname@example.org to learn more!
Be sure to check back often or subscribe to our blog for more Quick Tips!