Latest Court Decision Highlights the Value of UCC Lien Monitoring Service

CapitolThe US Court of Appeals for the Second Circuit issued a decision last week that may affect how secured parties authorize third parties to terminate financing statements after a mistakenly authorized UCC termination statement cost the secured party $1.5 billion.. Read the Reuters report here and click here to read the decision.

This decision underscores the value of UCC lien monitoring services: where secured parties can monitor their own UCC’s for unauthorized or accidental terminations. Also, secured parties should always ensure that UCC-3 Termination Amendments are included in their search results, and then contact the secured party(ies) of record to confirm the termination’s authenticity.

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[Special Offer] Free Virginia Online UCC Searches

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First Corporate Solutions is pleased to announce the addition of Virginia UCC data to our UCC library of states, available for searching Monday, January 26, 2015. Document images will be added soon to complement our Virginia solution and provide efficiency not accessible at the Virginia SOS itself; as you may already be aware, the Virginia SOS does not have document images online and they must be ordered separately. Until the images are included we will retrieve them for you upon request*. 

Enjoy consistent search logic, advanced search tools, comprehensive report options and a supporting portfolio which allows you to save search results and reports forever and later retrieve that information any time in the future at no further cost.

[Special February Promotion] All Virginia state searches you run on our online system through the end of February (2/28/2015) are free of charge. For existing clients, simply log in on Monday, January 26, 2015 to experience the benefits in action and take advantage of this opportunity.

Not an FCS online user? Schedule a demo of our UCC searching, filing and monitoring system today. Upon user registration, you will be able to search Virginia for free until 2/28/2015.

* Additional fees may apply

Lien Searching of Indexes with Mixed Lien Types — Why Uncovering Name Variations is the Key

One effect of Revised Article 9 and its implementation has been to better clarify and standardize naming conventions for entering debtor names onto a financing statement. These conventions are not only a guide to successful completion of the forms in order to perfect a security interest, but also to successful searching for financing statements in the indexes in which they are filed.

But what about searching indexes that include other lien types which are mixed in with financing statements, other lien types like Federal and State tax liens? How do Revised Article 9’s naming conventions affect the searching of those lien types?

A key issue to digest in answering that question is this: when filing tax liens, taxing agencies—including the IRS—are not held to the same naming standards that secured parties are held to with financing statements. The result is that debtor name variations on tax liens enter into and exist in the searchable indexes at these filing offices, and while an exact name search may not uncover their existence, their effectiveness nevertheless remains and the potential threat to a secured party’s perfected security interest from these Federal tax liens with debtor name variations is very real. Case law has been pretty clear about that.

So what does all of this mean for any searcher, like a secured party looking to qualify the credit worthiness of a potential new customer, who is searching indexes which include mixed lien types?

It means the need to uncover name variations in order to locate any and all potential liens, remains a very high priority to successfully completing a search in these indexes, no matter what Revised Article 9 clarified and standardized with regards to its naming conventions for financing statements. Tax liens are not governed by Revised Article 9’s naming conventions, but the need to locate them and uncover name variations to accomplish this has never been more important.

When searching, be sure to utilize a search engine which provides tools that assist in uncovering name variations. In many cases that means contracting with a professional search firm to either conduct the searches on your behalf or to provide a proprietary search engine so you can conduct the searches yourself—but with a search engine that actually helps you find the liens filed under some name variation.

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Three Actionable Things Lawyers Can Do To Polish Their Online Presence

This week have have a guest post from LawTrades.com, a service that helps place lawyers with those in need. They will discuss a few actions that lawyers can do to help market themselves online.


Three Actionable Things Lawyers Can Do To Polish Their Online Presence

Word of mouth is great, it’s been the primary avenue for lawyers to find new clients. However, an increasing amount of people aren’t resorting to a word of mouth referral to find a lawyer for them. If they are, it’s a very limited segment of people and it will continue to shrink. As much as lawyers hate to admit, people are beginning their lawyer searches online. Most professional service industries are already online like ZocDoc, which helps you find a doctor or Bench.co for finding a bookkeeper for your business.

In a highly digitized world, it’s essential for lawyers to maintain an online presence. Maintaining an online presence helps your practice stay relevant. Here are four actionable things that lawyers should do to help them become relevant online.

Revamp Your Website.

Having a professional website that looks sleek and has modern functionality is a huge way to distinguish your firm from the rest. Most solo practitioners and small law firms have a standard website with a bio, contact information and their practice areas. One thing that causes client backlash is accessibility, you can change this with a booking system on your website which allows clients to schedule a consultation with you. Also, consumers are always searching for reviews because reviews matter. Invest in a high quality template to make your website look modern. This can cost anywhere from $50-$100. If you have typical pricing that you charge for certain projects such as contract review, or forming a business make the process easy for your client to complete by letting them purchase that service online.  We can help you out with all of this at LawTrades.

Content Market the Right Way

Posting on a blog everyday might accomplish very little because you might not necessarily have a large following on your blog just yet. Although I think there’s a lot of value in posting valuable content on your blog everyday, if you’re looking to reach a large audience with your content, then consider posting on platforms such as Linkedin Pulse or Medium. These platforms have an inherent viral loop; a solid post on any of these platforms can reach thousands of users within a matter of days. The content has to be valuable and you should take an active role in promoting the content. You can always link back to your website as well. Spending time on a quality post can really go along way since the potential audience reach is very large. It takes a lot of time to put together quality posts, but you can’t expect content marketing to return an ROI overnight.

Story tell on social media

Any person that you would want to use your firm’s services probably visits Facebook, Twitter, Instagram, Pinterest multiple times per day. Do you have a presence on any of these platforms? If not, then you should start because this is a great way to start building your brand and engaging with new audiences that can use your services in the future. The biggest mistake that lawyers make on social media is that they fill their timelines with Tweets or Posts about free consultations. Lawyers are going for the “close” way to quickly and frequently without understanding the context of these platforms. That’s why lawyers look at these platforms as not being able to deliver a potential ROI. On these platforms, you have to bring real value, share interesting articles, quotes, pictures etc. By creating an audience that you can engage with about topics outside of the law, it will pay off in the long run when you attempt to go for the close in the future.

Although some attorneys are worried about the Internet draining money out of the legal industry, it’s important to note that lawyers can stay ahead of the game by becoming relevant online. It may take an hour or two out of the day but that’s what’s required to build an audience, provide value and then go for the close.


Law Trades | LawTrades.comashish@lawtrades.com

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Tired of reverse UCC searches exposing your customer list?

Have you noticed a wave of calls from your customers to renegotiate the terms of their security agreement? Does it strike you as odd that so many are calling you all at once?

Perhaps it’s not odd at all but instead an indication that a competitor has obtained a copy of your customer list and is reaching out directly to each and every one of your clients on it.

“No way!” you might say. “How did that happen?”

Well, it’s easier than you might think. Every time a secured party perfects a security interest by filing a financing statement, one result of that filing is to reveal a secured party’s debtor, its customer, in the public record. We all understand the reasoning behind this process and the intentions of the Uniform Commercial Code with regards to perfecting a security interest, and it has nothing to do with exposing a secured party’s customer list to its competitors!

However that’s exactly what occurs and how a specific use of the public record has evolved.

Just like one can search a Secretary of State index by debtor name to determine if a potential customer has any current obligations and how those obligations are collateralized, one can also search the SOS index by secured party.

And what does a secured party search reveal? It reveals the debtors of a secured party within the index searched—a secured party’s customer list.

If this is happening to your firm, perhaps it’s time to consider a Secured Party Representative service. This service allows secured parties to perfect their security interests as before BUT with one important difference: the secured party’s name is no longer listed on the financing statement. So, when a competitor runs a secured party search on your firm’s name, your customer list is protected.

Interested to learn more? Click here to see if you have a need for our secured party representative service.

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How to Handle Cancellation Instructions in California?

We welcome our blog contributor PJ Garcia of Beach Escrow this week to discuss her view on cancellation instructions this week.

Cancellation instructions are always a concerning and sometimes controversial area. In the November Residential Purchase Agreement (RPA) revision, California Association of Realtors (CAR) included some language that provides for unilateral cancellation of a sort which presents one of those controversies. Upon review of this language, the Escrow Attorneys and veteran Escrow Officers I have spoken to so far are effectively saying “Danger Will Robinson”! (and now I have dated myself).

There are many considerations for escrow agents in handling cancellation instructions. How individual companies decide to handle that remains to be seen, so I recommend checking with your escrow officer before advising your clients they can cancel unilaterally.

To cancel without a mutual cancellation instruction would require assessments and determinations on the part of the escrow agent that are really outside the scope of our role as a neutral fiduciary. These include consideration of the impact of forfeiture statues governing the liquidated damages clause. Please note that the liquidated damages paragraph is not listed in the Joint Escrow Instructions to Escrow Holder. Additionally, the Cancellation language in Paragraph 14G uses the term “notice”, but does not provide a process for that notice. Unlike Liquidated Damages, 14G does not require a specific acknowledgment, enhancing the “I didn’t see it” argument.

For your further information, here is an article on the subject of Liquidated Damages from the publication California Lawyer.

Contributor: PJ Garcia, Beach Pacific Escrow

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Drawbacks of a Certified UCC Search – FCS Greatest Hits #6

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The final installment in our Greatest Hits blog series covers state certified UCC searches, aka UCC11s. There are times when you might want to request a certified search, they do serve a purpose. But, because of their oftentimes narrow search logics which can inhibit a searchers ability to uncover name variations, thorough due diligence typically requires utilizing a broad-based search solution that is designed to uncover and include similar names in its search results, especially when searching indexes that include mixed lien types.


Drawbacks of a Certified Search

Locating Tax Liens

The first potential problem with a certified UCC search relates to locating tax liens. Many state filing offices administer tax lien records in addition to UCC’s. In some states, tax lien records are maintained on a separate index from UCC’s, while in other states the UCC and tax lien records are housed on a single searchable index. The single-index arrangement can cause problems for searchers.

The Uniform Commercial Code does not govern tax liens. While a UCC filer must list the exact legal name of their debtor in order to ensure the effectiveness of their filing, there is no such requirement for a government agency filing a notice of tax lien. Since a tax lien filer is not held to the same naming standard as a secured party filing a UCC Financing Statement, an active tax lien may not show up on a certified search using exact name search logic.

Exact Name Search Logic Increases Search Costs

Another drawback of a certified search is price. Most state filing offices charge between 15-25 dollars for a certified search. Sounds reasonable, right? Not so fast, keep in mind that a certified search will most likely not include any similar names. Due to the restrictive search logic used to generate a certified listing, you may have to order a separate certified search for each name variation you can think of and those fees can add up rather quickly. Exact name search logic, as used by state filing offices, increases your overall search costs.

Turn Around Time

Lastly, the turn-around time for a certified search can be slow. It is not uncommon for a state to take 5-7 business days to return a certified listing and for many lenders who are using UCC search information to help make an informed funding decision, that’s just too long to wait.

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Maximize UCC and Lien Search Results to Minimize Risk – FCS Greatest Hits #5

FCS Greatest Hits 6As we continue the FCS Greatest Hits blog series, we want to zero in on a specific benefit resulting from conducting UCC searches with enhanced search logic (i.e., not strict  or certified searches) through a proprietary UCC search system—finding name variations. Learn how to cast a wide net and then whittle your search down to only the relevant results.


Maximize UCC and Lien Search Results to Minimize Risk

When conducting UCC and lien searches as part of a prefunding due diligence investigation it is a good idea to maximize your results in order to minimize your risk. This strategy helps uncover hidden liens and those filed under critical name variations. To accomplish this, you will want to cast a wide net to bring in as many potential hits as possible and then whittle them down to only those that are pertinent to your transaction.

Online Searches

Online search systems are a great tool for maximizing results. Proprietary search systems and even some state websites incorporate broad based searching features such as wildcard characters and truncated name searching that help reveal name variations. By using these features, searchers can draw like names onto a single search report, for a single fee, and then review them in more detail to determine if they are items of interest.

See our previous blog post “Broad Based Name Searching? What is it? Why is it Important?? for more information on the power of broad based name searching.

Manual/Offline Searches

Not all searches can be performed online; sometimes you will need to place your search request with a private service company who has access to the filing office records. Although the search is out of your hands in these situations, there are still ways you can maximize your results. One of the best ways to do this is to thoroughly vet your provider before placing your request. Some service companies focus on name variations and maximizing results while others do not make this a priority. Make sure you communicate to your vendor that you are looking for similar names to be included in results.

Lastly, when ordering searches from a search company, be mindful of what special search instructions you include with your request. Asking a service company to limit results to a certain address, for example, will limit the scope of the results that they return to you.

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Benefits of a Proprietary UCC Database Search System – FCS Greatest Hits #4

FCS Greatest Hits 4The FCS Greatest Hits blog series continues today with more details on the features and benefits of searching with a proprietary UCC search system. And if you’re looking to see an online UCC search system in action, don’t hesitate to contact us for a free demonstration.


Benefits of a Proprietary UCC Database Search System

Let’s take a look at the benefits of using a proprietary database to perform state UCC searches.

What is a Proprietary Database Search?

A proprietary database is a UCC search system that is owned and operated by a private service company; it is not affiliated with any state agency. A proprietary search system is created when a service company purchases UCC data in bulk, then builds an interface where users can perform password protected online UCC searches.

Broad-Based Name Searching

One of the primary benefits of using a proprietary search system is the broad-based name searching capabilities. Search systems that use broad-based name searching offer flexible search logic by incorporating special features such as wildcard characters, truncated name searching and fuzzy word searching. These features are designed to produce a more inclusive search result to help searchers identify similar names and locate critical filings that might be missed using exact name search methodology.

Online Image Library

Another advantage of using a private search system is the availability of document images. Proprietary search systems typically have an expansive library of document images that users can download instantly while conducting their search. While a search report can show you party names, addresses and maybe even collateral type, it is usually necessary to view an image of the filed document to see what a given financing statement specifically secures. A database that does not offer online images is providing only a piece of the puzzle.

Consistency

Lastly, using a proprietary search system brings consistency to a user’s searching practices. For searchers using numerous state direct online databases, it can be cumbersome to maintain separate accounts and log in credentials for the different systems for each. Furthermore, keeping track of the various systems’ search logic parameters and learning to interpret search results in a variety of different formats can be confusing. Those using a private search system to satisfy their UCC search requirements enjoy consistent search logic, easy-to-read results and a support staff to provide training and ongoing support.

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What is “Standard Search Logic” and what are the Model Administrative Rules? – FCS Greatest Hits #3

We would be remiss in our duties of posting our Greatest Hits of UCC searching without mentioning some of the great things the folks at IACA are doing to standardize the application of the Uniform Commercial Code.


What is “Standard Search Logic” and what are the Model Administrative Rules?

The amount of liens filed in a given state’s filing office can number in the millions making accuracy, and the ability to uncover name variations,  paramount when analyzing search results. Each individual Secretary of State filing office has a set of rules called “standard search logic” that determines what search results will show for a given search. Here’s the official definition:

Standard Search Logic: The search logic used by a filing office to determine which filings will appear on an official UCC search of that jurisdiction.

iacaThe Model Administrative Rules (MARS) were developed by the International Association of Commercial Administrators (IACA) to standardize search logic for all state filing offices, which was one of the goals of Revised Article 9. Adoption of these rules is, unfortunately, not mandatory, but MARS are still important because they set the framework for standard search logic. Standard search logic sets rules for how words, abbreviations and symbols will be interpreted and delivered as search results by a search engine.

Here are a few examples of MARS search logic:

  • Spaces and punctuation are disregarded
  • “&”equates to “and”
  • No distinction between upper and lower case letters
  • Words and abbreviations at the end of an organization name that indicate the existence or nature of the organization (“noise words”) such as inc, llc, association, incorporated etc. are disregarded (but note that MARS leaves it to the states to determine what constitutes these “noise words”). Most if not all states recognize the following as “noise words”: Corp., Corporation, Incorporated, Inc., Limited Liability Company, L.L.C., Limited Partnership, L.P .

Keeping track of each state’s standard search logic can be a chore, and many people choose to use a UCC service provider to ensure they’re getting the most out of their search results. The FCS online UCC search system has the broad-based search tools (like wild cards and truncated search) you need to uncover name variations and assure you’re getting the results you need.

[Image Source: Official IACA Logo]

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Understanding the Limitations of State Direct UCC Online Searches & New Alternative Solution – FCS Greatest Hits #2

FCS Greatest Hits 2We continue our Greatest Hits blog post series this week with “Understanding the Limitations of State Direct UCC Online Searches & New Alternative Solution,” where we explain some of the drawbacks of using the state-provided UCC searching resources.


Understanding the Limitations of State Direct UCC Online Searches & New Alternative Solution

In addition to the broad-based name searching capabilities and reliable state-direct data we provide, our system features an expansive library of document images in PDF format, lifetime search history, real-time reporting of costs, and the ability to export search results into an Excel spreadsheet. The system also features a UCC filing and portfolio management portal that enables users to prepare, file and track their UCC transactions from one central, secured online location.

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.

Here are a few questions to ask when evaluating if a particular state direct search site is the right choice for your firm:

What Lien Types are available on the Index?
Numerous states maintain Tax Lien records (Federal and/or State) in addition to UCC data. However, these lien types may or may not be available to the searching public via the state’s online database. Some states even have a separate online index that requires a second search to locate Tax Liens. To avoid any surprise liens, remember to research what lien types will be included in your results when using a state direct database.

Does the state direct database provide an index date?
Many states that offer an online UCC index do not publish their index date (aka through date) on the website to inform searchers of how current the online data is. Outdated lien information can impede a searcher’s ability to determine current filing status, accurate party names and priority of claims.

Are document images available online?
While a search report can deliver several pieces of critical information, it is usually necessary to view an image of the filed document to see what collateral a given Financing Statement covers. State direct databases that do not offer images online are only providing a piece of the puzzle.

What is the Search Logic?
Before using any state direct online search system, it is essential to have an in depth understanding of the type of search logic it employs. For example, does the state site allow for the entry of truncated search strings? Does the system report similar names? These features allow searchers to reveal name variations and uncover filings that may have been mis-indexed.

Keeping track of the ins and outs of the various state direct search sites can be a daunting task. Try using a proprietary search system to streamline your search process. Privately maintained and operated, these systems offer consistent search logic, easy to read results and a support staff to provide training and ongoing support.

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Commercial Finance Association’s 70th Annual Convention

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First Corporate Solutions will exhibit UCC searching, filing, and monitoring products and services, among other risk management services, at the Commercial Finance Association’s 70th Annual Convention. The convention takes place in Washington D.C., November 12-14.

FCS will host a prize drawing for a Bose SoundLink Color speaker at its brand new exhibition booth. FCS encourages all CFA attendees to stop by the booth, enter the contest by dropping a business card, and learning about the many solutions FCS has to offer financial institutions, asset-based lenders and more commercial lenders. FCS will exhibit its Account Monitoring, an industry-leading product for asset-based lenders.

The CFA convention is the premier event for commercial lenders nationwide, and will feature a keynote presentation by Dr. Ben Bernanke, former Chairman of the Board of the Federal Reserve.

For more information check out the event web page.

Broad Based UCC and Lien Name Searching – FCS Greatest Hits #1

FCS Greatest Hits 1We have published a lot of material on the topic of UCC searching over the years. Effective UCC searching can save you time and money, so this topic has been popular among our readers. Today, we are starting a six part blog series on the nature of broad based searching and search logic as it relates to UCC searching. Enjoy our first post, and please remember that these blog posts are for educational purposes only; always consult your legal counsel if you have questions.


Broad Based UCC and Lien Name Searching: What is it? Why is it Important?

There are many options available for those looking to perform a UCC and lien search. There are certified searches that come directly from the filing office, state direct database searches that are available on a state’s website, and proprietary search systems that private service companies build and maintain. A while back, First Corporate Solutions published a blog series on evaluating state search options where we discussed the benefits and drawbacks of each of these search sources.

In the post titled, “Evaluating State UCC Search Options Series # 5: Benefits of a Proprietary Database Search” we briefly note that one of the primary benefits of using a private search system is their use of broad based search logic. Herein we will discuss broad based search logic in more detail.

What is broad based name searching?

Search systems that use broad based name searching offer flexible search logic, as opposed to the strict, exact name search logic used to generate a certified search at the filing office. Broad based name searching refers to features such as wildcard characters and truncated search strings. These features are designed to produce a more inclusive search result.

Why is broad based name searching important?

One reason broad based name searching is so important is that it helps searchers locate filings under similar names. Locating filings under similar names and identifying name variations is critical, especially when it comes to tax liens. When tax liens are mixed in with UCC records at the filing office, they can be difficult to locate because tax liens are not held to the same strict debtor naming standards as UCC Financing Statements. A tax lien is often considered active and enforceable even if it is not filed under the taxpayer’s exact legal name as defined for voluntary lien holders in the Uniform Commercial Code. An exact name search cannot reveal tax liens filed under a name variation; only a broad based search solution can locate a tax lien under a name variation.

Another great benefit of using search systems that employ broad based search logic is that they help reduce search costs by allowing searchers to combine associated names of interest onto a single search report rather than paying separately for each. For example, imagine a search for a prospect named Robert McDonald. Using a search system’s wildcard feature, a searcher can draw results for McDonald, Mc Donald, MacDonald and Mac Donald as well as Robert, Rob, Bob, Bobby, Robbie and more all onto a single search report!

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New Jersey Added to Online UCC System

ANew Jersey state flags of Monday, November 3, we have added UCC data from New Jersey to our online UCC system. Active users may search New Jersey’s UCC database of more than 1.2 million filings, complemented by clear, downloadable document images.

Not familiar with our online UCC search system? Check out some more information here. And if you’re interested in learning more from one of our staff members, please click here to schedule a demo.

UCC system demo

 

New Jersey online UCC data is only available for legal and financial clients.

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Georgia UCC Data Added to FCS Online System

Georgia UCC dataWe are pleased to announce the release of Georgia data to our online UCC system. Beginning November 3, 2014, FCS online clients may search the state’s database of more than 3 million filings within our online UCC system.

The FCS online UCC system was designed with the high volume searcher in mind. For example, on the FCS system you can see full, detailed results with just one click, instead of having to open multiple screens. You will be able to combine your results all into just one clean search report. This saves a huge amount of time when doing regular UCC searches in Georgia.

Additionally, you may order all copies for your search at once—you no longer have to select each UCC-1, and then every amendment, to obtain your document images.

Georgia’s SOS website does not allow you to run wildcard searches, instead using a system called “stem searches” or “RA9 searches.” We have covered the importance of name variations in UCC searching extensively in previous blog posts.

The Georgia state portal does not contain filings prior to 1/1/1995. We have supplemented the state-direct data from Georgia with proprietary data, allowing users to search for UCC’s beyond that date. This means there are recent amendments belonging to older filings that will not have a parent on the state’s site, but will on the FCS online UCC system.

The Georgia SOS website also has a base monthly fee of $11.95 per month. The FCS system only charges you for the transactions you perform.

A constant benefit of using a third party online UCC system is the consistency of search logic and user interface, two areas that FCS takes great pride in providing for our customers.

If you have any questions, please contact your account manager or give us a call at 800.406.1577.

Not an online user? Set up a time to demo the FCS online UCC system today!

UCC system demo

 

First Corporate Solutions to Sponsor Bulk Sale Class, Exhibit at California Escrow Association’s 59th Annual Education Conference

California Escrow Association 59th Annual Educational Conference

FCS will host an exhibit at this year’s disco themed “Don’t Stop Believing” CEA conference, as well as sponsoring and presenting company news and information at the bulk sale session. The conference runs October 23-25 at the Hilton in Costa Mesa, with the bulk sale presentation taking place Saturday at 8:30AM.

FCS will host booth #15 and will offer information on the available products and services, conference swag and a prize drawing.

The conference will feature a golf tournament on Thursday, followed by two days full of speakers, industry sessions, legislative updates and prize drawings.

FCS has been a long time sponsor of the CEA and brings many services to the industry including UCC search packages, UCC filing, title search, and UCC recording and publishing.

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First Corporate Solutions Will Exhibit CADENCE Integrated Lien Monitoring at the CADENCE User Conference

It’s that time of year again: The CADENCE User Conference is just a few days away! The conference kicks off Tuesday, October 21 and runs through 10/23  at the Sheraton Birmingham, Alabama. Here is the conference flyer.

The conference, which has grown from a handful of CADENCE users into a substantial group of partners and vendors, will give Bayside Business Solutions partners a chance to discuss their various integrations with CADENCE, as well as give operators the opportunity to offer feedback on the user experience.

This marks the fifth year that we have exhibited at the CADENCE User Conference, which brings together Information Technology leaders and operators in the factoring industry.

First Corporate Solutions is the original partner to develop an integrated product with CADENCE. Together, we deliver a lien monitoring solution that can be managed within CADENCE that alerts users of post-filing lien events that could affect their perfected security interest.

The conference, which is only open to CADENCE users and partners, will feature eight breakout sessions, networking opportunities and tips to utilize the CADENCE platform better.

As a special gift to our readers, we’re giving away free copies of our eBook, The Ultimate Guide to Post Funding Due Diligence. Click below to get your copy today!

AM ebook

 

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Does the control agreement govern if it conflicts with any of the customer agreements between Pledgor and Broker?

Attorney Bennett Cohen returns this week to continue his examination on control agreements for pledged securities accounts. This is part six in our eight part series on the topic of control agreements. To start from the beginning, please see the first post, Examining Issues with Control Agreements for Pledged Securities Accounts.


Does the control agreement govern if it conflicts with any of the customer agreements between Pledgor and Broker?

Control Agreements photoSome control agreements fail to provide that if there is a conflict between the control agreement and the other customer agreements between Pledgor and Broker, that the control agreement will govern.  It is important for the Lender that the control agreement govern any such conflict, since the customer agreements will most likely conflict with, and be adverse to, the Lender’s rights. It should further be noted that a Charles Schwab’s control agreement form we recently reviewed provided exactly the opposite (i.e., that any conflict with the control agreement will be governed by Charles Schwab’s other customer agreements), and for this reason such provision was objectionable.

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