You have likely heard of a system that allows for easy management of UCC filings and debtor searches from talking with others in your industry. At the surface some of these DIY systems sound the same, but if they happened to be referring to Database Direct, then there is a lot more to it at the granular level to differentiate our system from the rest.
We’re taking it back to the basics, sharing the most important types of UCC Forms. This basic understanding lays the groundwork for achieving perfection in your security interest. The best place to start is asking yourself, “does my intent match my form?”.
The Food Security Act (FSA) states that a buyer may buy farm products without being subject to a security interest created by the seller. However, the FSA does allow a secured party to take action to prevent a buyer from obtaining clear of security interest.
There are two methods to filing a UCC, one is to send in the paper filing either through a courier or through the mail. The other is to record the UCC electronically through the state’s filing system. Both are equally effective, but there are some things that need to be considered when determining which method to use.
As companies attempt to pivot, adapt, and grow quickly an M&A strategy is one of the main ways to do so even if it comes with its own set of challenges in how the entities will fit together. The increase in these transactions will likely come across your desk in the coming months.
The UCC Financing Statement filing process can seem overwhelming if you are unsure of the proper procedure. It’s also important to know that filing rules can vary from state to state.