Welcome to the new Lien Solutions blog – insights and resources to help professionals reduce risk and shape the future of their business. You’ll find articles on thought leadership, practical tips, and an exchange of ideas that drive innovation and better outcomes.
As a lender, “lien management” may not be your primary job task. Your specialty is helping clients solve their financial issues through loans and leases, so you might view lien management as a necessary chore, and, once the client has been approved for a loan, that’s the end of the process. Not really.
No one can predict the future, including lenders. Therefore, it is crucial to be diligent about maintaining lien perfection today. In the event that debtors default on their loans, lien perfection helps ensure that you are protected and losses can be recovered. Having clear insights into your individual debtors’ risks and across your portfolio help you maintain a healthy portfolio and reduce risk.
The debtor, a distributor of bulk petroleum products, entered into a consignment agreement with IPC. Under the agreement, IPC delivered fuel to the debtor–consignee (“Pettit”) for sale to consignee’s customers. Pettit filed for bankruptcy. At the time of the filing of bankruptcy, Pettit had had some of the consignor’s unsold fuel on hand, as well as proceeds from sold fuel (cash and accounts receivables—that is balances owed by customers that had not yet been paid) and which had not yet been remitted to the consignor.
Where the real answer lies: Section 9-506 of the Uniform Commercial Code The court explained that, under Section 9-506, the variation of a debtor name on the financing statement is not considered seriously misleading if it is uncovered during a search of the full, correct name using the filing office’s standard search logic and while […]
The modern financial landscape is growing increasingly more complex due to internal corporate pressures and external regulatory changes. In terms of secured lending processes, filing Uniform Commercial Code (UCC) forms correctly and in a timely manner is critical, yet full of complexity. Furthermore, monitoring the health of your liens and continuing your liens, if warranted, is equally important. This blog series will look at some of the things that cannot be missed if one is to securely file and manage UCCs, whether you file directly through a Secretary of State or use a law firm or other partner to file.
On top of that, the lending landscape itself is changing, with increasing expectations and demands from regulators, corporate and customers, and productivity opportunities presented by process improvements and technology. In short, change is driving not only the need for more proactive lien management but also the tools and methods for doing so. Disruption has been […]
It’s always been important for lenders not only to perfect their assets but to manage and maintain the perfection of their portfolios over time. Changing events and circumstances impact the protections that have been put in place, and it’s necessary to be diligent in addressing them.
As a lending professional, it’s your job to ensure your company’s assets are protected with each loan it makes. As we’ve learned in Lien Management – Not as difficult as you might fear and Monitoring and Auto Continuation of this lien management primer series, that can be a real test. However, we’ve also discovered it doesn’t have to be difficult if you find the right partner that can provide automated solutions and guidance to overcome challenges.
Proper lien management of your loan portfolio doesn’t have to be an onerous chore. In fact, employing proper lien management practices offers the lender many risk management and workflow efficiency benefits at each step of the loan lifecycle.