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ComplianceÁrea Financeira07/01/2021 00:00:00

The benefit of lien monitoring for in-house filers

Smart lenders like you know that protecting and perfecting their interests in assets is essential to sound lending. You spend considerable effort conducting due diligence on your borrowers through Uniform Commercial Code (UCC) searches. Filing the UCC financing statement is just the beginning. A filing is an importing milestone, but not the end of the journey. The process of maintaining protection must continue. 

So many factors can potentially put a lender's interest in assets at risk. it's essential to stay aware of changes that can impact one's position. All of the efforts that go into an initial UCC filing can be for naught if those filings are not continuously tracked to keep them current.

Sometimes the issue is a simple name change. While customers are required to inform us if they change their company name, some just forget. A name change requires us to adjust the paperwork so we keep our lien. That is important.
Banking industry professional

The answer is ongoing monitoring and active portfolio management. What you don't know can hurt you. Failure to renew a lien in a timely manner means you are no longer protected. Learn the steps you can take to eliminate surprises that could compromise your position. 

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