Happy 2011! It is a new year and there is a lot going on in the world of due diligence and risk management. What follows is a brief overview of a few stories we will be watching and blogging about this upcoming year.
Increased Processing Times
Faced with dramatic budget cuts, State filing offices are struggling to meet the public’s demand for quick and efficient access to public records. In 2011, we are likely to see even more delays in the fulfillment of service requests including business filings, certified searches and document retrieval requests.
Proposed Changes to Uniform Commercial Code Revised Article 9
In 2010 the National Conference of Commissioners for Uniform State Laws (NCCUSL) voted to adopt the proposed changes to Article 9 of the Uniform Commercial Code. To date, three states (NV, ND and NE) have begun the legislative process to formally adopt NCCUSL’s proposed changes. More discussion, debate and legislative action is sure to follow throughout the year.
Pre-Lien IRS Monitoring for Tax Liabilities
Through the filing of IRS form 8821, a designated agent can receive pre-lien notification of a taxpayer’s federal tax delinquencies. Factors and Asset-based Lenders look to IRS form 8821 to learn of any developing tax issues involving their clients prior to the filing of a Notice of Federal Tax Lien. With more and more high-risk lending taking place, look for 8821 monitoring practices to increase this year.
Be sure to check the First Corporate Solutions blog regularly for information and updates on these and other developing stories in 2011!