What’s your least favorite part of a due diligence search? If you answered, “Determining the exact legal name of a debtor” you have good and plentiful company. For many, this process is frustrating and nerve-wracking because even the slightest mistake could prove costly to your company’s future.
Here’s one quick and easy tip to not only soothe your nerves, but ensure you have the correct name as well: Order that debtor’s Articles of Incorporation.Articles of Incorporation, also known as a corporate charter, establish the existence of a corporation in the United States and Canada, and are always filed with the secretary of state or other company register. They may also be referred to as the public organic record. The articles lay out the governance of the corporation and its structure. But most importantly for the terms of our discussion, they give the exact legal name of the company. So there’s no better place for you to go to get the vital information you need.
Amendments to the Uniform Commercial Code, effective in July 2013, require you to review the public organic record to ensure proper perfection of your security interests. If you’re not doing so now, not only are you violating statutory requirements, you’re also needlessly putting yourself at risk in the event of future debtor difficulty because without the correct legal name on your lien, your lien may no longer be secure.
If you need help in ordering a debtor’s Articles of Incorporation, there is help. Lien Solutions has experts ready to assist you with optimizing your corporate name verification process to ensure you not only are obtaining Article of Incorporation for all of your debtors, but are protected in all areas of due diligence, lien perfection, and risk mitigation.
To learn more, call us today at 800.833.5778.