When preparing a UCC3 Change Statement, it is critical to input the correct original filing number on the form to ensure the change is affected in the UCC index. Many filing offices have strict rules about the formatting of file numbers, so be sure to list the filing number exactly as it is shown on the filed UCC1 including any spaces, hyphens, preceding letters, etc.
One area of common confusion for filers involves UCC records where the original UCC1 has already been amended or continued. Keep in mind, even if a previous Change Statement is on record for the original UCC1 Financing Statement , the appropriate filing number to put on a subsequent filing is the number that the filing office assigned to the original UCC1, a UCC3 should never list the number for another UCC3.
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 info@ficoso.com to learn more!
The 2010 amendments to Revised Article 9 of the Uniform Commercial Code (RA9) are set to go into effect in only a few short months. Some FCS customers and regular readers of our blog have expressed apprehension about the impending changes and have requested additional information. In response, FCS has created a resource page as a one-stop shop to answer all of your RA9 amendment questions!
Visit our RA 9 Resources page at http://info.ficoso.com/ra9_resources to:
- Download a FREE copy of our eBook, The Ultimate Guide to the 2010 UCC Article 9 Amendments
- Read our six-part blog series on the amendments
- Access an archived webinars on the amendments by attorney Darrell Pierce and attorney Michael L. Weissman
Are you looking for a UCC & Corporate provider? First Corporate Solutions builds customized service solutions based on your specific business needs. Contact us today for a free consultation at 800.406.1577 or info@ficoso.com.
Quick Tip: Order a Long Form Good Standing to Confirm you Have Copies of All Documents on File
A good standing certificate (aka status certificate ) is a state-issued document that verifies that a registered entity is authorized to do business in a given jurisdiction. Further, the document certifies that the named entity has complied with certain statutory requirements imposed by that state. These requirements may include things such as filing requisite paperwork and paying an annual fee or tax.
Most states offer two types of good standing certificates: a short form or a long form. A short form good standing typically contains only the entity name and its status with the filing office as of the date the certificate was issued. A long form good standing will list additional information about the entity. This information varies by state but usually contains a chronological list of all documents on file (articles and amendments , mergers, etc.) along with their respective filing dates.
A long form good standing can be a valuable tool when performing due diligence on a registered organization; it provides a good overview of the life of the entity and offers assurance that you have copies of all documents on file.
A sole proprietorship is a simple business structure in which there is no distinction between owner and business. Since the business and its owner are one and the same, many UCC filers are unsure how to name a sole proprietorship as debtor on a UCC1 Financing Statement.
In the eyes of the Uniform Commercial Code, a sole proprietorship is considered an individual, not an organization, even if operating under a trade name (dba). When preparing a UCC1 Financing Statement , a sole proprietorship should be listed as an individual debtor.
Although your UCC filing would be accepted by the filing office with only the individual name, First Corporate Solutions recommends listing any associated trade name as an additional debtor to ensure the record can be easily found later in a UCC search effort.
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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 interests.
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 info@ficoso.com to learn more!
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QUICK TIP: Performing Lien Searches on Individual Debtors
When coordinating pre-funding due diligence searches , there can be a lot of ambiguity in determining what name to search for an individual debtor. Think of all of the variations there could be of a person’s name: nicknames, people that go by their middle names rather than their first, former names due to a marriage or divorce, hyphenated or dual last names – all of these variations make it tough to be certain you are searching to cover all of your bases.
This is why it is good practice to perform lien searches to reveal filings under all known name variations. So if an applicant sometimes goes by Robert and other times by Bob, it’s a good idea to search to include both names in your search effort. If your applicant recently married or divorced, it’s in your best interest to search for both names since there could be active liens filed under either name.
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We have had several posts here on the FCS blog that address the public records filing scam that deals with the Sovereign Citizens movement and the so-called Redemption Process. Those who follow the movement believe that by filing a series of documents into the public record, including UCC1 Financing Statements, one can discharge all personal debt and gain access to a secret government account being held in their name.
Read our previous posts on the topic by selecting one of the following links:
Fraud Alert: UCC Filing Scam on the Rise
New Developments as Fight Against UCC Fraud Gains Momentum
Over the last several weeks, some interesting new reports have emerged that we want to share with our regular readers who have been following the story.
From the Journal of Accountancy:
“Sovereign citizens” promoter faces up to 164 years in prison
From the Los Angeles Times:
Police teach tactics for handling “sovereign citizens”
