Delaware Secretary of State released their latest holiday schedule: Friday, November 10, 2023State Holiday – Veterans Day (observed) – The Division of Corporations will be closed.** Wednesday, November 22, 2023There will be no change in the regular hours of the Division – the 4-12 shift will be working 4 P.M. to 12 Midnight. Thursday, November 23 & Friday, November 24, 2023State Holidays – Thanksgiving Day and day after Thanksgiving – The Division of Corporations will be closed.** Friday, December 8, 2023 Division Employee Recognition Event – The 4-12 shift will be working 11 A.M. to 7 P ..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 officer might reject a business entity filing; what follows is a list of a few of the most common. Business Entity Name is Not Available States do not allow ..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: https://www.iaca.org/secured-transactions/forms/ The UCC1 Financing Statement form contains three main sections: debtor information, secured party information a ..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 Times of Economic Uncertainty As the financial climate dictates, lenders encounter various obstacles that can impact their lending practices and increase the ..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 databases – free searches: sounds great, right? When examined closely however, many of these state sites have limited utility due to some serious system limitations. H ..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. These programs run interval searches on debtor names to check for any new filing activity and then provide timely updates to alert a creditor to potential threat ..read more

According to Revised Article 9 of the Uniform Commercial Code, a UCC Financing Statement is only effective if it gets the debtor name right. A UCC filing that fails to properly identify the debtor by their exact legal name will not offer the secured party priority status to collect should the debtor default or file for bankruptcy. Searchers often mistakenly interpret this to mean they only need be concerned with filings that provide an exact name match to their target. In truth, when performing lien searches it is a good idea to include name variations (aka similar names) in your search effort ..read more

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 improve your UCC portfolio management? Check out our post on on how to manage your growing UCC portfolio. Encountered any issues with client list exposure due to co ..read more

Conscientious searchers know that an exhaustive pre-funding due diligence investigation will include a search of court records for civil litigation involving their prospect. Not being attorneys however, many are unsure of what to order or what information they will need to provide to get the ball rolling. In addition to the search name, there are five basic pieces of information you will need to supply in order to secure a relevant and fruitful result. Here is a brief discussion of what information you should be prepared to provide. 1. What Court? The U.S. Court system contains hundreds of cou ..read more

A recent court ruling in Wisconsin once again has affirmed the supreme importance secured parties must place on their data entry procedures when naming debtors on financing statements to perfect their security interests. A recap of the case can be found here. Once again, a typo in the debtor name created a UCC filing that was judged to be seriously misleading, and therefore left the secured party’s security interest with the debtor unperfected. In this instance, it was the inclusion of a single extra space, “Inc .” instead of “Inc.” specifically. This seemingly enough innocuous error led to th ..read more